----

|   | þ | ANNUAL REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED APRIL 30, 2010. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------|

|   | o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES   EXCHANGE ACT OF 1934 |
|--------|---|------------------------------------------------------------------------------------------------------|

|  Colorado                                                     |   |   | 98-0461154                           |
|--------------------------------------------------------------------|--------|--------|--------------------------------------|
|  State or other jurisdiction of incorporation or organization |   |   | (I.R.S. Employer Identification No.) |

|  Title of each class           |   |   | Name of each exchange on which is registered |
|-------------------------------------|--------|--------|----------------------------------------------|
|  Common Stock, $.001 Par Value |   |   | NYSE Amex                                    |

|   | Yes o | No þ |
|--------|-------|-----------|

|   | Yes o | No þ |
|--------|-------|-----------|

|   | Yes þ | No o |
|--------|------------|------|

|   | Yes o | No o |
|--------|-------|------|

|   | Yes þ | No o |
|--------|------------|------|

| Large accelerated filer: o | Accelerated filer: þ | Non-accelerated filer: o                      | Smaller reporting company: o |
|----------------------------|---------------------------|-----------------------------------------------|------------------------------|
|                       |                      | (Do not check if a smaller reporting company) |                         |

----

----

| 23.1   |   |  Consent of Smythe Ratcliffe LLP, filed herewith.                                                                                                      |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                        |
| 23.2   |   | Consent of KPMG LLP, filed herewith.                                                                                                                        |
|   |   |                                                                                                                                                        |
| 31.1   |   | Certification of CEO Pursuant to Exchange Act Rules 13a-14 and 15d-14 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith. |
|   |   |                                                                                                                                                        |
| 31.2   |   | Certification of CFO Pursuant to Exchange Act Rules 13a-14 and 15d-14 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith. |
|   |   |                                                                                                                                                        |
| 32.1   |   | Certification of CEO Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.              |
|   |   |                                                                                                                                                        |
| 32.2   |   | Certification of CFO Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.              |

----

|               | OILSANDS QUEST INC. |
|--------------------|---------------------|
|               |                |   |
| Date: May 16, 2011 | By:                 | /s/ Garth Wong |
|               |                | Garth Wong,President and Chief Executive Officer(Principal Executive Officer) |
|               |                |   |
|               |                |   |
| Date: May 16, 2011 | By:                 | /s/ Annie Lamoureux |
|               |                | Annie Lamoureux,Vice President and Controller(Principal Accounting Officer) |

|  /s/ Ronald Blakely   |   |  Director |  May 16, 2011 |
|----------------------------|--------|----------------|--------------------|
| Ronald Blakely             |   |           |               |
|                       |   |           |               |
| /s/ Paul Ching             |   | Director       | May 16, 2011       |
| Paul Ching                 |   |           |               |
|                       |   |           |               |
| /s/ Christopher H. Hopkins |   | Director       | May 16, 2011       |
| Christopher H. Hopkins     |   |           |               |
|                       |   |           |               |
| /s/ Brian MacNeill         |   | Director       | May 16, 2011       |
| Brian MacNeill             |   |           |               |
|                       |   |           |               |
| /s/ Ronald Phillips        |   | Director       | May 16, 2011       |
| Ronald Phillips            |   |           |               |
|                       |   |           |               |
| /s/ John Read              |   | Director       | May 16, 2011       |
| John Read                  |   |           |               |
|                       |   |           |               |
| /s/ Gordon Tallman         |   | Director       | May 16, 2011       |
| Gordon Tallman             |   |           |               |
|                       |   |           |               |
| /s/ Pamela Wallin          |   | Director       | May 16, 2011       |
| Pamela Wallin              |   |           |               |
|                       |   |           |               |
| /s/ T. Murray Wilson       |   | Director       | May 16, 2011       |
| T. Murray Wilson           |   |           |               |

----

| Reports of Independent Registered Public Accounting Firms                                                                                            |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                 |   |
| Consolidated Balance Sheets, April 30, 2010 and 2009                                                                                                 |   |
|                                                                                                                                                 |   |
| Consolidated Statements of Operations, Three Years Ended April 30, 2010 and Period from Inception on April 3, 1998 to April 30, 2010                 |   |
|                                                                                                                                                 |   |
| Consolidated Statements of Stockholders’ Equity, Three Years Ended April 30, 2010 and Period from Inception on April 3, 1998 to April 30, 2010 |   |
|                                                                                                                                                 |   |
| Consolidated Statements of Comprehensive Loss, Three Years Ended April 30, 2010 and Period from Inception on April 3, 1998 to April 30, 2010         |   |
|                                                                                                                                                 |   |
| Consolidated Statements of Cash Flows, Three Years Ended April 30, 2010 and Period from Inception on April 3, 1998 to April 30, 2010                 |   |
|                                                                                                                                                 |   |
| Notes to Consolidated Financial Statements                                                                                                           |   |
|                                                                                                                                                 |   |

----

----

----

----

|                                                                                                                                                                                        |   |   | April 30, 2010 |   | April 30, 2009 |      |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------------|--------|----------------|-----------|
|                                                                                                                                                                                        |   |   |           |
| ASSETS                                                                                                                                                                                      |   |
| Current Assets:                                                                                                                                                                             |   |   |
| Cash and cash equivalents                                                                                                                                                                   |   | $      | 18,642         |   |           | $         | 6,986 |   |
| Accounts receivable                                                                                                                                                                         |   |   | 1,421          |   |           |      |  3,617 |   |
| Short-term investments                                                                                                                                                                      |   |   | -              |   |           |      |  25,209 |   |
| Prepaid expenses                                                                                                                                                                            |   |   | 739            |   |           |      |  337 |   |
| Available for sale equity securities                                                                                                                                                        |   |   | 65             |   |           |      |  60 |   |
| Total Current Assets                                                                                                                                                                        |   |   | 20,867         |   |           |      |  36,209 |   |
|                                                                                                                                                                                        |   |   |           |   |           |      |   |   |
| Property and Equipment (note 5)                                                                                                                                                             |   |   | 458,168        |   |           |      |  398,975 |   |
| Assets held for sale (note 3)                                                                                                                                                               |   |   | 5,059          |   |           |      |  - |   |
| Total Assets                                                                                                                                                                                |   | $      | 484,094        |   |           | $         | 435,184 |   |
|                                                                                                                                                                                        |   |   |           |   |           |      |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                                  |   |
| Current Liabilities:                                                                                                                                                                        |   |   |           |   |           |      |   |
| Accounts payable (notes 15 and 16)                                                                                                                                                          |   | $      | 1,606          |   |           | $         | 3,463 |   |
| Accrued liabilities                                                                                                                                                                         |   |   | 2,626          |   |           | 5,604     |   |
| Flow-through share premium liability                                                                                                                                                        |   |   | -              |   |           | 749       |   |
| Total Current Liabilities                                                                                                                                                                   |   |   | 4,232          |   |           | 9,816     |   |
|                                                                                                                                                                                        |   |   |           |   |           |      |   |
| Deferred Taxes (note 7)                                                                                                                                                                     |   |   | 62,516         |   |           | 65,651    |   |
| Asset Retirement Obligation (note 6)                                                                                                                                                        |   |   | 17,485         |   |           | 2,621     |   |
| Liabilities related to assets held for sale (note 3)                                                                                                                                        |   |   | 1,146          |   |           | -         |   |
|                                                                                                                                                                                        |   |   |           |   |           |      |   |
| Stockholders’ Equity:                                                                                                                                                                 |   |
| Capital Stock                                                                                                                                                                               |   |   |           |   |           |      |   |
| Preferred Stock, par value of $0.001 each, 10,000,000 shares authorized, 1 Series B Preferred share outstanding (note 10)                                                                   |   |   | -              |   |           | -         |   |
| Common Stock, par value of $0.001 each, 750,000,000 shares authorized, 292,491,188 and 241,559,549 shares outstanding at April 30, 2010 and April 30, 2009 respectively (note 11) |   |   | 292            |   |           | 242       |   |
| Additional Paid-in Capital                                                                                                                                                                  |   |   | 758,007        |   |           | 713,591   |   |
| Deficit Accumulated During Development Stage                                                                                                                                                |   |   | (395,196)      |   |           | (330,715) |   |
| Accumulated Other Comprehensive Income (Loss)                                                                                                                                               |   |   | 35,612         |   |           | (26,022)  |   |
| Total Stockholders’ Equity                                                                                                                                                            |   |   | 398,715        |   |           | 357,096   |   |
| Total Liabilities and Stockholders’ Equity                                                                                                                                            |   | $      | 484,094        |   |           | $         | 435,184 |   |

----

|                                                                            |   |      For the Years Ended April 30, |        |   | FromInception onApril 3, 1998through toApril 30, 2010 |   |
|---------------------------------------------------------------------------------|--------|-------------------------------------------------------------|-------------|--------|-------------------------------------------------------|--------|
| 2010                                                                            |   |                                                        | 2009        |   |                                                  | 2008   |
| Expenses                                                                        |   |                                                        |        |   |                                                  |   |   |   |   |   |   |   |
| Exploration                                                                     |   | $                                                           | 48,682      |   |                                                  | $      | 70,843 |   |   | $ | 96,362 |   |   | $ | 253,723 |   |
| General and administrative                                                      |   |                                                        |        |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Corporate                                                                       |   |                                                        | 16,979      |   |                                                  |   | 12,567 |   |   |   | 11,386 |   |   |   | 58,820 |   |
| Stock-based compensation (notes 9, 11 and 12)                                   |   |                                                        | 5,584       |   |                                                  |   | 17,481 |   |   |   | 20,847 |   |   |   | 146,827 |   |
| Foreign exchange (gain) loss                                                    |   |                                                        | (5,088)     |   |                                                  |   | 4,780 |   |   |   | (441) |   |   |   | (548) |   |
| Depreciation and accretion                                                      |   |                                                        | 2,528       |   |                                                  |   | 1,564 |   |   |   | 1,073 |   |   |   | 5,532 |   |
|                                                                            |   |                                                        | 68,685      |   |                                                  |   | 107,235 |   |   |   | 129,227 |   |   |   | 464,354 |   |
| Other Items                                                                     |   |                                                        |        |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                                                 |   |                                                        | (134)       |   |                                                  |   | (1,089) |   |   |   | (2,469) |   |   |   | (6,432) |   |
| Loss before income tax                                                          |   |                                                        | 68,551      |   |                                                  |   | 106,146 |   |   |   | 126,758 |   |   |   | 457,922 |   |
| Deferred income tax benefit (note 7)                                            |   |                                                        | (9,830)     |   |                                                  |   | (17,847) |   |   |   | (34,053) |   |   |   | (61,680) |   |
| Net loss from continuing operations                                             |   |                                                        | 58,721      |   |                                                  |   | 88,299 |   |   |   | 92,705 |   |   |   | 396,242 |   |
| Net loss from discontinued operations (note 3)                                  |   |                                                        | 5,760       |   |                                                  |   | 835 |   |   |   | 42 |   |   |   | 6,648 |   |
| Net loss                                                                        |   |                                                        | 64,481      |   |                                                  |   | 89,134 |   |   |   | 92,747 |   |   |   | 402,890 |   |
| Net loss attributable to non-controlling interest (note 8)                      |   |                                                        | -           |   |                                                  |   | - |   |   |   | - |   |   |   | (7,694) |   |
| Net loss attributable to common stockholders                                    |   | $                                                           | 64,481      |   |                                                  | $      | 89,134 |   |   | $ | 92,747 |   |   | $ | 395,196 |   |
|                                                                            |   |                                                        |        |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |
| Net loss from continuing operations per share – Basic and Diluted         |   | $                                                           | 0.19        |   |                                                  | $      | 0.34 |   |   | $ | 0.41 |   |   |   |   |   |
| Net loss from discontinued operations per share – Basic and Diluted       |   |                                                        | 0.02        |   |                                                  |   | - |   |   |   | - |   |   |   |   |   |
| Net loss attributable to common stockholders per share –Basic and Diluted |   | $                                                           | 0.21        |   |                                                  | $      | 0.34 |   |   | $ | 0.41 |   |   |   |   |   |
| Weighted Average Number of Common Shares Outstanding (note 11)                  |   |                                                        | 305,327,827 |   |                                                  |   | 261,510,084 |   |   |   | 227,054,265 |   |   |   |   |   |

----

|                                       |   |         |        |   |            |   |   | Additional Paid in Capital |   |   | Accumulated Other Comprehensive Income (Loss) |   |   | Deficit Accumulated During the Development Stage |   |   | Total Stockholders’ Equity |   |
|--------------------------------------------|--------|--------------|-------------|--------|-----------------|--------|--------|----------------------------|--------|--------|-----------------------------------------------|--------|--------|--------------------------------------------------|--------|--------|----------------------------------|--------|
|                                       |   | Common Stock |        |   | Preferred Stock |   |   |                       |   |   |                                          |   |   |                                             |
|                                       |   | Shares       |        |   | Par Value       |   |   | Shares                     |   |   | Par Value                                     |   |   |                                             |   |   |                             |   |   |   |
|                                       |   |         |        |   |            |   |   |                       |   |   |                                          |   |   |                                             |   |   |                             |   |   |   |   |   |   |   |
| Balance, April 30, 2009                    |   |         | 241,559,549 |   |            | $      | 242    |                       |   |   | 1                                             |   |   | $                                                | -      |   |                             | $      | 713,591 |   |   | $ | (26,022) |   |   | $ | (330,715) |   |   | $ | 357,096 |   |
| Common stock issued for:                   |   |         |        |   |            |   |   |                       |   |   |                                          |   |   |                                             |   |   |                             |   |   |   |   |   |   |   |   |   | - |   |   |   |   |   |
| Cash                                       |   |         | 44,789,313  |   |            |   | 45     |                       |   |   | -                                             |   |   |                                             | -      |   |                             |   | 39,969 |   |   |   | - |   |   |   | - |   |   |   | 40,014 |   |
| Stock option exercises                     |   |         | 964,769     |   |            |   | -      |                       |   |   | -                                             |   |   |                                             | -      |   |                             |   | 782 |   |   |   | - |   |   |   | - |   |   |   | 782 |   |
| Exchange of OQI Sask Exchangeable shares   |   |         | 5,177,557   |   |            |   | 5      |                       |   |   | -                                             |   |   |                                             | -      |   |                             |   | (5) |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Stock-based compensation cost              |   |         | -           |   |            |   | -      |                       |   |   |                                          |   |   |                                             | -      |   |                             |   | 5,584 |   |   |   | - |   |   |   | - |   |   |   | 5,584 |   |
| Share issue costs                          |   |         | -           |   |            |   | -      |                       |   |   | -                                             |   |   |                                             | -      |   |                             |   | (2,096) |   |   |   | - |   |   |   | - |   |   |   | (2,096) |   |
| Proceeds from exercise of OQI Sask options |   |         | -           |   |            |   | -      |                       |   |   | -                                             |   |   |                                             | -      |   |                             |   | 182 |   |   |   | - |   |   |   | - |   |   |   | 182 |   |
| Other comprehensive income                 |   |         |        |   |            |   |   |                       |   |   |                                          |   |   |                                             |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign exchange gain on translation       |   |         | -           |   |            |   | -      |                       |   |   | -                                             |   |   |                                             | -      |   |                             |   | - |   |   |   | 61,634 |   |   |   | - |   |   |   | 61,634 |   |
| Net loss                                   |   |         | -           |   |            |   | -      |                       |   |   | -                                             |   |   |                                             | -      |   |                             |   | - |   |   |   | - |   |   |   | (64,481) |   |   |   | (64,481) |   |
| Balance April 30, 2010                     |   |         | 292,491,188 |   |            | $      | 292    |                       |   |   | 1                                             |   |   | $                                                | -      |   |                             | $      | 758,007 |   |   | $ | 35,612 |   |   | $ | (395,196) |   |   | $ | 398,715 |   |

----

|                                                                |   | Common Stock |        |   | Preferred Stock |   |   | Additional Paid in Capital |   |   | Accumulated Other Comprehensive Income (Loss) |   |   | Deficit Accumulated During the Development Stage |   |   | Total Stockholders’ Equity |   |
|---------------------------------------------------------------------|--------|--------------|-------------|--------|-----------------|--------|--------|----------------------------|--------|--------|-----------------------------------------------|--------|--------|--------------------------------------------------|--------|--------|----------------------------------|--------|
|                                                                |   | Shares       |        |   | Par Value       |   |   | Shares                     |   |   | Par Value                                     |   |   |                                             |   |   |                             |   |   |   |
|                                                                |   |         |        |   |            |   |   |                       |   |   |                                          |   |   |                                             |   |   |                             |   |   |   |   |   |   |   |
| Balance, April 30, 2008                                             |   |         | 213,861,958 |   |            | $      | 214    |                       |   |   | 1                                             |   |   | $                                                | -      |   |                             | $      | 604,403 |   |   | $ | 36,732 |   |   | $ | (241,581) |   |   | $ | 399,768 |   |
| Common stock issued for:                                            |   |         |        |   |            |   |   |                       |   |   |                                          |   |   |                                             |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                                                                |   |         | 23,784,917  |   |            |   | 24     |                       |   |   | -                                             |   |   |                                             | -      |   |                             |   | 91,215 |   |   |   | - |   |   |   | - |   |   |   | 91,239 |   |
| Property (note 5(d))                                                |   |         | 640,000     |   |            |   | 1      |                       |   |   | -                                             |   |   |                                             | -      |   |                             |   | 3,718 |   |   |   | - |   |   |   | - |   |   |   | 3,719 |   |
| Premium on flow-through shares                                      |   |         | -           |   |            |   | -      |                       |   |   | -                                             |   |   |                                             | -      |   |                             |   | (1,803) |   |   |   | - |   |   |   | - |   |   |   | (1,803) |   |
| Stock option exercises                                              |   |         | 35,000      |   |            |   | -      |                       |   |   | -                                             |   |   |                                             | -      |   |                             |   | 165 |   |   |   | - |   |   |   | - |   |   |   | 165 |   |
| Exchange of OQI Sask Exchangeable shares                            |   |         | 3,237,674   |   |            |   | 3      |                       |   |   | -                                             |   |   |                                             | -      |   |                             |   | (3) |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Stock-based compensation cost                                       |   |         | -           |   |            |   | -      |                       |   |   |                                          |   |   |                                             | -      |   |                             |   | 17,481 |   |   |   | - |   |   |   | - |   |   |   | 17,481 |   |
| Share issue costs                                                   |   |         | -           |   |            |   | -      |                       |   |   | -                                             |   |   |                                             | -      |   |                             |   | (3,108) |   |   |   | - |   |   |   | - |   |   |   | (3,108) |   |
| Proceeds from exercise of OQI Sask options                          |   |         | -           |   |            |   | -      |                       |   |   | -                                             |   |   |                                             | -      |   |                             |   | 1,523 |   |   |   | - |   |   |   | - |   |   |   | 1,523 |   |
| Other comprehensive income                                          |   |         |        |   |            |   |   |                       |   |   |                                          |   |   |                                             |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Transfer of unrealized loss on available-for-sale equity securities |   |         | -           |   |            |   | -      |                       |   |   | -                                             |   |   |                                             | -      |   |                             |   | - |   |   |   | 168 |   |   |   | - |   |   |   | 168 |   |
| Foreign exchange loss on translation                                |   |         | -           |   |            |   | -      |                       |   |   | -                                             |   |   |                                             | -      |   |                             |   | - |   |   |   | (62,922) |   |   |   | - |   |   |   | (62,922) |   |
| Net loss                                                            |   |         | -           |   |            |   | -      |                       |   |   | -                                             |   |   |                                             | -      |   |                             |   | - |   |   |   | - |   |   |   | (89,134) |   |   |   | (89,134) |   |
| Balance April 30, 2009                                              |   |         | 241,559,549 |   |            | $      | 242    |                       |   |   | 1                                             |   |   | $                                                | -      |   |                             | $      | 713,591 |   |   | $ | (26,022) |   |   | $ | (330,715) |   |   | $ | 357,096 |   |

----

|                                                    |   | Common Stock |        |   | Preferred Stock |   |   | Additional Paid in Capital |   |   | Accumulated Other Comprehensive Income (Loss) |   |   | Deficit Accumulated During the Development Stage |   |   | Total Stockholders’ Equity |   |
|---------------------------------------------------------|--------|--------------|-------------|--------|-----------------|--------|--------|----------------------------|--------|--------|-----------------------------------------------|--------|--------|--------------------------------------------------|--------|--------|----------------------------------|--------|
|                                                    |   | Shares       |        |   | Par Value       |   |   | Shares                     |   |   | Par Value                                     |   |   |                                             |   |   |                             |   |   |   |
|                                                    |   |         |        |   |            |   |   |                       |   |   |                                          |   |   |                                             |   |   |                             |   |   |   |   |   |   |   |
| Balance, April 30, 2007                                 |   |         | 164,624,278 |   |            | $      | 165    |                       |   |   | 1                                             |   |   | $                                                | -      |   |                             | $      | 440,460 |   |   | $ | 3,365 |   |   | $ | (148,834) |   |   | $ | 295,156 |   |
| Common stock issued for:                                |   |         |        |   |            |   |   |                       |   |   |                                          |   |   |                                             |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                                                    |   |         | 31,314,166  |   |            |   | 31     |                       |   |   | -                                             |   |   |                                             | -      |   |                             |   | 128,224 |   |   |   | - |   |   |   | - |   |   |   | 128,255 |   |
| Stock option exercises                                  |   |         | 1,456,250   |   |            |   | 2      |                       |   |   | -                                             |   |   |                                             | -      |   |                             |   | 3,821 |   |   |   |   |   |   |   |   |   |   |   | 3,823 |   |
| Premium on flow-through shares                          |   |         | -           |   |            |   | -      |                       |   |   | -                                             |   |   |                                             | -      |   |                             |   | (4,379) |   |   |   | - |   |   |   | - |   |   |   | (4,379) |   |
| Warrant exercises                                       |   |         | 8,856,015   |   |            |   | 9      |                       |   |   |                                          |   |   |                                             |   |   |                             |   | 17,510 |   |   |   |   |   |   |   |   |   |   |   | 17,519 |   |
| Property (notes 5(a) and (d))                           |   |         | 750,000     |   |            |   | -      |                       |   |   | -                                             |   |   |                                             | -      |   |                             |   | 3,292 |   |   |   | - |   |   |   | - |   |   |   | 3,292 |   |
| Stock-based compensation                                |   |         | 44,000      |   |            |   | -      |                       |   |   | -                                             |   |   |                                             | -      |   |                             |   | 116 |   |   |   | - |   |   |   | - |   |   |   | 116 |   |
| Exchange of OQI Sask Exchangeable shares                |   |         | 6,817,249   |   |            |   | 7      |                       |   |   | -                                             |   |   |                                             | -      |   |                             |   | (7) |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Stock-based compensation cost                           |   |         | -           |   |            |   | -      |                       |   |   |                                          |   |   |                                             | -      |   |                             |   | 20,847 |   |   |   | - |   |   |   | - |   |   |   | 20,847 |   |
| Share issue costs                                       |   |         | -           |   |            |   | -      |                       |   |   | -                                             |   |   |                                             | -      |   |                             |   | (7,079) |   |   |   | - |   |   |   | - |   |   |   | (7,079) |   |
| Proceeds from exercise of OQI Sask options and warrants |   |         | -           |   |            |   | -      |                       |   |   | -                                             |   |   |                                             | -      |   |                             |   | 1,598 |   |   |   | - |   |   |   | - |   |   |   | 1,598 |   |
| Other comprehensive income                              |   |         |        |   |            |   |   |                       |   |   |                                          |   |   |                                             |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized loss on available for sale equity securities |   |         | -           |   |            |   | -      |                       |   |   | -                                             |   |   |                                             | -      |   |                             |   | - |   |   |   | (142) |   |   |   | - |   |   |   | (142) |   |
| Foreign exchange gain on translation               |   |         | -           |   |            |   | -      |                       |   |   | -                                             |   |   |                                             | -      |   |                             |   | - |   |   |   | 33,509 |   |   |   | - |   |   |   | 33,509 |   |
| Net loss                                                |   |         | -           |   |            |   | -      |                       |   |   | -                                             |   |   |                                             | -      |   |                             |   | - |   |   |   | - |   |   |   | (92,747) |   |   |   | (92,747) |   |
| Balance April 30, 2008                                  |   |         | 213,861,958 |   |            | $      | 214    |                       |   |   | 1                                             |   |   | $                                                | -      |   |                             | $      | 604,403 |   |   | $ | 36,732 |   |   | $ | (241,581) |   |   | $ | 399,768 |   |

----

|                                                                                                   |   |   |  Common Stock |   |                  |  Perferred Stock |               |   |                  |   |                                  |    |                                               |    |                                                         |   |                                 |        |                                   |    |            |   |
|--------------------------------------------------------------------------------------------------------|--------|--------|--------------------|--------|-----------------------|-----------------------|--------------------|--------|-----------------------|--------|---------------------------------------|---------|----------------------------------------------------|---------|--------------------------------------------------------------|--------|--------------------------------------|-------------|----------------------------------------|---------|-----------------|--------|
|                                                                                                   |   |   |  Shares       |   |   Par Value |                  |   Shares |   |   Par Value |   |   Additonal Paid in Capital |    |   Accumulated Other Comprehensive Income |    |   Deficit Accumulated During the Development Stage |   |   Non-Controlling Interest |        |   Total Stockholders' Equity |    |
|  Common stock issued at inception on April 3, 1998 for assetsCommon stock issued for:   |   |   |  6,000,000    |   |  $               |  6               |               |   |  -               |   |  $                               | -       |                                               |  $ | 92                                                           |   |  $                              |  -     |                                   |  $ |  -         |   |  $ |  - |   |  $ |  98 |   |
|  subscription                                                                                     |   |   |  77,500       |   |                  |  -               |               |   |  -               |   |                                  |  - |                                               |    |  36                                                     |   |                                 |  -     |                                   |    |  -         |   |   |  - |   |   |  36 |   |
|  Property                                                                                         |   |   |  17,406,604   |   |                  |  17              |               |   |  -               |   |                                  |  - |                                               |    |  5,805                                                  |   |                                 |  -     |                                   |    |  -         |   |   |  - |   |   |  5,822 |   |
|  Cash                                                                                             |   |   |  49,254,199   |   |                  |  50              |               |   |  -               |   |                                  |  - |                                               |    |  99,243                                                 |   |                                 |  -     |                                   |    |  -         |   |   |  - |   |   |  99,293 |   |
|  Cashless Exercise of warrants and options                                                        |   |   |  13,184,966   |   |                  |  13              |               |   |  -               |   |                                  |  - |                                               |    |  (13)                                                   |   |                                 |  -     |                                   |    |  -         |   |   |  - |   |   |  - |   |
|  Services                                                                                         |   |   |  17,973,611   |   |                  |  18              |               |   |  -               |   |                                  |  - |                                               |    |  10,836                                                 |   |                                 |  -     |                                   |    |  -         |   |   |  - |   |   |  10,854 |   |
|  Settlement of debt                                                                               |   |   |  32,490,383   |   |                  |  33              |               |   |  -               |   |                                  |  - |                                               |    |  28,294                                                 |   |                                 |  -     |                                   |    |  -         |   |   |  - |   |   |  28,327 |   |
|  Premium on flow-through shares                                                                   |   |   | -             |   |                  |  -               |               |   |  -               |   |                                  |  - |                                               |    |  (2,535)                                                |   |                                 |  -     |                                   |    |  -         |   |   |  - |   |   |  (2,535) |   |
|  Preferred shares issued on reorganization (noted 10)                                             |   |   |  -            |   |                  |  -               |               |   |  1               |   |                                  |  - |                                               |    |  223,579                                                |   |                                 |  -     |                                   |    |  -         |   |   |  - |   |   |  223,579 |   |
|  Exchange of OQI Sask Exchangeables                                                               |   |   |  28,237,015   |   |                  |  28              |               |   |  -               |   |                                  |  - |                                               |    |  (28)                                                   |   |                                 |  -     |                                   |    |  -         |   |   |  - |   |   |  - |   |
|  Share issue costs                                                                                |   |   |  -            |   |                  |  -               |               |   |  -               |   |                                  |  - |                                               |    |  (2,895)                                                |   |                                 |  -     |                                   |    |  -         |   |   |  - |   |   |  (2,895) |   |
|  Stock-based compensation cost                                                                    |   |   |  -            |   |                  |  -               |               |   |  -               |   |                                  |  - |                                               |    |  56,067                                                 |   |                                 | -           |                                   |    |  -         |   |   |  - |   |   |  56,067 |   |
|  Proceeds from exercise of OQI Sask options and warrants                                          |   |   |  -            |   |                  |  -               |               |   |  -               |   |                                  |  - |                                               |    |  1,056                                                  |   |                                 |  -     |                                   |    |  -         |   |   |  - |   |   |  1,056 |   |
|  Beneficial convesion feature of Convertible debentures and warrants                              |   |   |  -            |   |                  |  -               |               |   |  -               |   |                                  |  - |                                               |    |  20,923                                                 |   |                                 |  -     |                                   |    |  -         |   |   |  - |   |   |  20,923 |   |
| Noncontrolling interest:Shares issued to noncontrolling interest                                       |   |   |  -            |   |                  |  -               |               |   |  -               |   |                                  |  - |                                               |    |  -                                                      |   |                                 |  -     |                                   |    |  -         |   |   |  13 |   |   | 13 |   |
|  Net loss attributable to noncontrolling interest                                                 |   |   |  -            |   |                  |  -               |               |   |  -               |   |                                  |  - |                                               |    |  -                                                      |   |                                 |  -     |                                   |    |  -         |   |   |  (7,694) |   |   |  (7,694) |   |
|  Increase in interest arising from share issuance by OQI Sask                                     |   |   |  -            |   |                  |  -               |               |   |  -               |   |                                  |  - |                                               |    |  -                                                      |   |                                 |  -     |                                   |    |  -         |   |   |  24,433 |   |   |  24,433 |   |
|  Shares purchased from noncontrolling interest                                                    |   |   |  -            |   |                  |  -               |               |   |  -               |   |                                  |  - |                                               |    |  -                                                      |   |                                 |  -     |                                   |    |  -         |   |   |  (16,752) |   |   |  (16,752) |   |
|  Other comprehensive income:                                                                      |   |   |               |   |                  |                  |               |   |                  |   |                                  |    |                                               |    |                                                         |   |                                 |        |                                   |    |            |   |   |   |   |   |   |   |
|  Unrealized loss on available for sale equity securities                                          |   |   |  -            |   |                  |  -               |               |   |  -               |   |                                  |  - |                                               |    |  -                                                      |   |                                 | (26)        |                                   |    |  -         |   |   |  - |   |   |  (26) |   |
|  Foreign excahnge gain on translation                                                             |   |   |  -            |   |                  |  -               |               |   |  -               |   |                                  |  - |                                               |    |  -                                                      |   |                                 |  3,391 |                                   |    |  -         |   |   |  - |   |   |  3,391 |   |
|  Net loss                                                                                         |   |   |  -            |   |   -         |                  |   -      |   |   -         |   |   -                         |    |   -                                      |    |     (148,834)                            |   | -                                    |        |   (148,834)                  |    |
|  Balance April 30, 2007                                                                           |   |   | 164,624,278   |   |  $               |  165             |               |   |  1               |   |  $                               |  - |                                               |  $ | 440,460                                                      |   |                                 |  3,365 |                                   |  $ |  (148,834) |   |  $ |  - |   |  $ |  295,156 |   |
|                                                                                                   |   |   |               |   |                  |                  |               |   |                  |   |                                  |    |                                               |    |                                                         |   |                                 |        |                                   |    |            |   |   |   |   |   |   |   |
|                                                                                                   |   |   |               |   |                  |                  |               |   |                  |   |                                  |    |                                               |    |                                                         |   |                                 |        |                                   |    |            |   |   |   |   |   |   |   |
|                                                                                                   |   |   |               |   |                  |                  |               |   |                  |   |                                  |    |                                               |    |                                                         |   |                                 |        |                                   |    |            |   |   |   |   |   |   |   |

----

|                                                                            |   | Year Ended April 30, |     |   | From Inception on April 3, 1998 through toApril 30, 2010 |   |
|---------------------------------------------------------------------------------|--------|----------------------|----------|--------|----------------------------------------------------------|--------|
|                                                                            |   | 2010                 |     |   | 2009                                                     |   |   | 2008 |   |   |   |
|                                                                            |   |                 |     |   |                                                     |   |   |   |   |   |   |   |
| Net loss                                                                        |   | $                    | 64,481   |   |                                                     | $      | 89,134 |   |   | $ | 92,747 |   |   | $ | 402,890 |   |
| Unrealized loss on available for sale equity securities                         |   |                 | -        |   |                                                     |   | - |   |   |   | 142 |   |   |   | 168 |   |
| Transfer of unrealized loss on available for sale equity securities to net loss |   |                 | -        |   |                                                     |   | (168) |   |   |   | - |   |   |   | (168) |   |
| Exchange (gain) loss on translation                                             |   |                 | (61,634) |   |                                                     |   | 62,922 |   |   |   | (33,509) |   |   |   | (35,612) |   |
| Comprehensive loss                                                              |   | $                    | 2,845    |   |                                                     | $      | 151,888 |   |   | $ | 59,380 |   |   | $ | 367,278 |   |
| Comprehensive loss attributable to non-controlling interest                     |   |                 | -        |   |                                                     |   | - |   |   |   | - |   |   |   | (7,694) |   |
| Comprehensive  loss attributable to common stockholders               |   | $                    | 2,845    |   |                                                     | $      | 151,888 |   |   | $ | 59,380 |   |   | $ | 359,584 |   |

----

|                                                                                 |   | Years Ended April 30, |     |   | From Inception on April 3, 1998Through toApril 30, 2010 |   |
|--------------------------------------------------------------------------------------|--------|-----------------------|----------|--------|---------------------------------------------------------|--------|
|                                                                                 |   | 2010                  |     |   | 2009                                                    |   |   | 2008 |   |   |   |
|                                                                                 |   |                  |     |   |                                                    |   |   |   |   |   |   |   |
| Operating Activities                                                                 |   |                  |     |   |                                                    |   |   |   |   |   |   |   |
| Net loss                                                                             |   | $                     | (64,481) |   |                                                    | $      | (89,134) |   |   | $ | (92,747) |   |   | $ | (402,890) |   |
| Non-cash adjustments to net loss                                                     |   |                  |     |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |
| Stock-based compensation                                                             |   |                  | 5,584    |   |                                                    |   | 17,481 |   |   |   | 20,847 |   |   |   | 146,827 |   |
| Deferred income tax benefit                                                          |   |                  | (11,961) |   |                                                    |   | (18,156) |   |   |   | (34,069) |   |   |   | (64,139 | ) |
| Depreciation and accretion                                                           |   |                  | 2,528    |   |                                                    |   | 1,564 |   |   |   | 1,073 |   |   |   | 5,532 |   |
| Asset retirement obligation expensed                                                 |   |                  | 13,618   |   |                                                    |   | 1,068 |   |   |   | - |   |   |   | 14,686 |   |
| Impairment of unproved properties                                                    |   |                  | 6,403    |   |                                                    |   | - |   |   |   | - |   |   |   | 7,260 |   |
| Other non-cash items                                                                 |   |                  | -        |   |                                                    |   | 388 |   |   |   | (82) |   |   |   | 378 |   |
| Changes in Non-Cash Working Capital                                                  |   |                  |     |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |
| Accounts receivable and prepaid expenses                                             |   |                  | 2,321    |   |                                                    |   | (600) |   |   |   | (2,341) |   |   |   | (1,016) |   |
| Accounts payable                                                                     |   |                  | (5,715)  |   |                                                    |   | (4,845) |   |   |   | 10,915 |   |   |   | 8,414 |   |
| Changes in non-cash working capital related to assets   held for sale |   |                  | (481)    |   |                                                    |   | 84 |   |   |   | - |   |   |   | (397) |   |
| Cash Used in Operating Activities                                                    |   |                  | (52,184) |   |                                                    |   | (92,150) |   |   |   | (96,404) |   |   |   | (285,345) |   |
| Investing Activities                                                                 |   |                  |     |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |
| Property and equipment expenditures                                                  |   |                  | (1,781)  |   |                                                    |   | (7,418) |   |   |   | (14,621) |   |   |   | (81,195) |   |
| Short-term investment                                                                |   |                  | 25,209   |   |                                                    |   | (5,397) |   |   |   | (17,812) |   |   |   | - |   |
| Other investments                                                                    |   |                  | -        |   |                                                    |   | 117 |   |   |   | (248) |   |   |   | (548) |   |
| Cash Used in Investing Activities                                               |   |                  | 23,428   |   |                                                    |   | (12,698) |   |   |   | (32,681) |   |   |   | (81,743) |   |
|                                                                                 |   |                  |     |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |
| Financing Activities                                                                 |   |                  |     |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of shares for cash                                                          |   |                  | 38,702   |   |                                                    |   | 88,297 |   |   |   | 142,518 |   |   |   | 366,263 |   |
| Bank loan                                                                            |   |                  | -        |   |                                                    |   | - |   |   |   | (21,208) |   |   |   | - |   |
| Shares issued on exercise of subsidiary options and warrants                         |   |                  | 116      |   |                                                    |   | 1,523 |   |   |   | 1,598 |   |   |   | 4,293 |   |
| Shares issued by subsidiary to non-controlling interest (note 4(a))                  |   |                  | -        |   |                                                    |   | - |   |   |   | - |   |   |   | 7,664 |   |
| Convertible debentures                                                               |   |                  | -        |   |                                                    |   | - |   |   |   | - |   |   |   | 8,384 |   |
| Cash Provided by Financing Activities                                                |   |                  | 38,818   |   |                                                    |   | 89,820 |   |   |   | 122,908 |   |   |   | 386,604 |   |
|                                                                                 |   |                  |     |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |
| Inflow of Cash and cash equivalents                                                  |   |                  | 10,062   |   |                                                    |   | (15,028) |   |   |   | (6,177) |   |   |   | 19,516 |   |
| Effects of exchange rate changes on cash                                             |   |                  | 1,594    |   |                                                    |   | (4,484) |   |   |   | 281 |   |   |   | (874) |   |
| Cash and cash equivalents, Beginning of Year                                         |   |                  | 6,986    |   |                                                    |   | 26,498 |   |   |   | 32,394 |   |   |   | - |   |
| Cash and cash equivalents, End of Year                                               |   | $                     | 18,642   |   |                                                    | $      | 6,986 |   |   | $ | 26,498 |   |   | $ | 18,642 |   |
| Non-Cash Financing Activities                                                        |   |                  |     |   |                                                    |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued for properties                                                   |   | $                     | -        |   |                                                    | $      | 3,718 |   |   | $ | 3,293 |   |   | $ | 10,848 |   |
| Warrants issued for properties                                                       |   | $                     | -        |   |                                                    | $      | - |   |   | $ | - |   |   | $ | 1,764 |   |
| Common stock issued for services                                                     |   | $                     | -        |   |                                                    | $      | - |   |   | $ | 116 |   |   | $ | 10,505 |   |
| Common stock issued for debt settlement                                              |   | $                     | -        |   |                                                    | $      | - |   |   | $ | - |   |   | $ | 28,401 |   |

----

| 1. | DESCRIPTION OF BUSINESS AND NATURE OF OPERATIONS |
|----|--------------------------------------------------|

| 2. | BASIS OF PRESENTATION |
|----|-----------------------|

|   | a) | Principles of consolidation |
|--------|----|-----------------------------|

----

|   | b) | Use of estimates |
|--------|----|------------------|

|   | c) | Foreign currency translation |
|--------|----|------------------------------|

|   | d) | Cash and cash equivalents |
|--------|----|---------------------------|

|   | e) | Short-term investments |
|--------|----|------------------------|

|   | f) | Property and equipment |
|--------|----|------------------------|

----

|   | g) | Income Taxes |
|--------|----|--------------|

|   | h) | Stock-based compensation |
|--------|----|--------------------------|

----

|   | i) | Financial Instruments |
|--------|----|-----------------------|

|   | (i) | Fair value |
|--------|-----|------------|

|   | (ii) | Interest rate risk |
|--------|------|--------------------|

|   | (iii) | Market risk |
|--------|-------|-------------|

|   | (iv) | Credit risk |
|--------|------|-------------|

----

|   | (v) | Foreign currency exchange rate |
|--------|-----|--------------------------------|

|   | j) | Loss per share |
|--------|----|----------------|

|   | k) | Asset retirement obligations |
|--------|----|------------------------------|

|   | l) | Environmental contingencies |
|--------|----|-----------------------------|

|   | m) | Immaterial corrections |
|--------|----|------------------------|

----

|   | - | The Company determined that the net impact of the immaterial error for the year ended April 30, 2007 was a decrease to stock-based compensation expense, net loss and comprehensive loss of $0.1 million with a corresponding decrease to additional paid-in-capital and deficit accumulated during the development stage at April 30, 2007. The basic and diluted net loss attributable to common stockholders remained unchanged for the year ended April 30, 2007. |
|--------|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | - | The Company determined that the net impact of the immaterial error for the year ended April 30, 2008 was an increase to stock-based compensation expense, net loss and comprehensive loss of $1.6 million with a decrease to the basic and diluted net loss attributable to common stockholders of $0.01 per share for the year ended April 30, 2008. The cumulative impact of the immaterial error as of April 30, 2008 was an increase of $1.6 million to additional paid-in-capital and deficit accumulated during the development stage at April 30, 2008. |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | - | The Company determined that the net impact of the immaterial error for the year ended April 30, 2009 was an increase to stock-based compensation expense, net loss and comprehensive loss of $0.2 million which did not result in any change to the basic and diluted net loss attributable to common stockholders for the year ended April 30, 2009.  The cumulative impact of the immaterial error as of April 30, 2009 was an increase of $1.8 million to additional paid-in-capital and deficit accumulated during the development stage at April 30, 2009.   |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | n) | Recent accounting pronouncements |
|--------|----|----------------------------------|

----

|   | 1. | The period after the balance sheet date during which management of a reporting entity should evaluate events or transactions that may occur for potential recognition or disclosure in the financial statements. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | The circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its financial statements. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. |   The disclosures that an entity should make about events or transactions that occurred after the balance sheet date. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------|

----

|   | - | Entities must disclose the amounts of, and reasons for, significant transfers between Level 1 and Level 2, as well as those into and out of Level 3, of the fair value hierarchy. Transfers into a level must be disclosed separately from transfers out of the level. Entities are required to judge the significance of transfers based on earnings and total assets or liabilities or, when changes in fair value are recognized in other comprehensive income, on total equity; |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Entities must also disclose and consistently follow their policy for when to recognize transfers into and out of the levels, which might be, for example, on the date of the event resulting in the transfer or at the beginning or end of the reporting period; |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Entities must separately present gross information about purchases, sales, issuances, and settlements in the reconciliation disclosure of Level 3 measurements, which are measurements requiring the use of significant unobservable inputs; |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | For Level 2 and Level 3 measurements, an entity must disclose information about inputs and valuation techniques used in both recurring and nonrecurring fair value measurements. If a valuation technique changes, for example, from a market approach to an income approach, an entity must disclose the change and the reason for it. The amendments include implementation guidance on disclosures of valuation techniques and inputs; and |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | - | Fair value measurement disclosures must be presented by class of assets and liabilities. Identifying appropriate classes requires judgment, and will often require the disaggregation of assets or liabilities included within a line item on the financial statements. An entity must determine the appropriate classes requiring disclosure based on the nature and risks of the assets and liabilities, their classification in the fair value hierarchy, and the level of disaggregated information required by other U.S. GAAP for specific assets and liabilities, such as derivatives. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                  |   |  For the Years Ended April 30, |   From Inception on April 3, 1998 through to |
|---------------------------------------|--------|-------------------------------------|---------------------------------------------------|
|                                  |   | 2010                                |                                              |   | 2009 |   |   | 2008 |   |   | April 30, 2010 |   |
|                                  |   | (in thousands)                      |                                              |   | (in thousands) |   |   | (in thousands) |   |   | (in thousands) |   |
|                                  |   |                                |                                              |   |   |   |   |   |   |   |   |   |
| Exploration costs                     |   | $                                   | 1,487                                             |   |   | $ | 1,144 |   |   | $ | 58 |   |   | $ | 2,704 |   |
| Impairment on unproved properties     |   |                                | 6,403                                             |   |   |   | - |   |   |   | - |   |   |   | 6,403 |   |
| Loss before income taxes              |   |                                | 7,890                                             |   |   |   | 1,144 |   |   |   | 58 |   |   |   | 9,107 |   |
| Provision for income taxes            |   |                                | (2,130)                                           |   |   |   | (309) |   |   |   | (16) |   |   |   | (2,459) |   |
| Net loss from discontinued operations |   | $                                   | 5,760                                             |   |   | $ | 835 |   |   | $ | 42 |   |   | $ | 6,648 |   |

| 4. | ACQUISITIONS |
|----|--------------|

|   | a) | Reorganization of Oilsands Quest Sask Inc. and Acquisition of Non-controlling Interest |
|--------|----|----------------------------------------------------------------------------------------|

----

| Consideration comprised of:                                         |   | (in thousands) |     |
|---------------------------------------------------------------------|--------|----------------|----------|
|                                                                |   |           |     |
| Fair value of Exchangeable Shares issued for OQI Sask Common Shares |   | $              | 213,913  |   |
| Fair value of  OQI Sask Warrants                          |   |           | 9,666    |   |
|                                                                |   | $              | 223,579  |   |
|                                                                |   |           |     |   |
| Purchase price allocation:                                          |   |           |     |   |
| Property                                                            |   | $              | 322,271  |   |
| Deferred income taxes                                               |   |           | (98,692) |   |
| Net assets acquired                                                 |   | $              | 223,579  |   |

|   | b) | Acquisition of Stripper Energy Services Inc. |
|--------|----|----------------------------------------------|

| Consideration comprised of: |   | (in thousands) |   |
|-----------------------------|--------|----------------|--------|
|                        |   |           |   |
| Cash Paid                   |   | $              | 17,949 |   |
|                        |   |           |   |   |
| Purchase Price allocation   |   |           |   |   |
| Property                    |   | $              | 25,407 |   |
| Deferred income taxes       |   |           | (7,458 | ) |
| Net assets acquired         |   | $              | 17,949 |   |

| 5. | PROPERTY AND EQUIPMENT |
|----|------------------------|

|                                             |   | April 30,2010  |    |   | April 30,2009  |   |
|--------------------------------------------------|--------|----------------|---------|--------|----------------|--------|
|                                             |   | (in thousands) |    |   | (in thousands) |   |
| Saskatchewan Oil Sands Rights                    |   |           |    |   |           |   |   |   |
| Permits                                          |   | $              | 403,152 |   |           | $      | 341,921 |   |
| Licenses                                         |   |           | 2,301   |   |           |   | 1,950 |   |
| Alberta Oil Sands Rights                         |   |           |    |   |           |   |   |   |
| Permits                                          |   |           | 35,478  |   |           |   | 30,045 |   |
| Leases                                           |   |           | 7,849   |   |           |   | 6,622 |   |
| Saskatchewan Oil Shale Rights (Permits) (note 3) |   |           | -       |   |           |   | 9,440 |   |
| Equipment                                        |   |           | 14,894  |   |           |   | 11,636 |   |
|                                             |   |           | 463,674 |   |           |   | 401,614  |   |
| Less: Accumulated Depreciation                   |   |           | (5,506) |   |           |   | (2,639) |   |
| Net Book Value                                   |   | $              | 458,168 |   |           | $      | 398,975 |   |

----

|   | a) | Saskatchewan Oil Sands Permits |
|--------|----|--------------------------------|

|   | b) | Saskatchewan Oil Sands Licenses |
|--------|----|---------------------------------|

|   | c) | Alberta Oil Sands Permits |
|--------|----|---------------------------|

----

|   | d) | Alberta Oil Sands Lease |
|--------|----|-------------------------|

|   | e) | Saskatchewan Oil Shale Permits (note 3) |
|--------|----|-----------------------------------------|

----

| 6. | ASSET RETIREMENT OBLIGATION |
|----|-----------------------------|

|                                    |   | April 30, 2010 |   |   | April 30, 2009 |   |
|-----------------------------------------|--------|----------------|--------|--------|----------------|--------|
|                                    |   | (in thousands) |   |   | (in thousands) |   |
| Obligation at beginning of year         |   | $              | 2,621  |   |           | $      | - |   |
| Liabilities incurred                    |   |           | 14,321 |   |           |   | 3,873 |   |
| Liabilities settled                     |   |           | (160   | )      |           |   | - |   |
| Accretion expense                       |   |           | 210    |   |           |   | 150 |   |
| Revisions                               |   |           | -      |   |           |   | (998 | ) |
| Foreign currency translation adjustment |   |           | 493    |   |           |   | (404 | ) |
| Obligation at end of year               |   | $              | 17,485 |   |           | $      | 2,621 |   |

| 7. | DEFERRED INCOME TAX |
|----|---------------------|

|   | a) | Deferred tax liability |
|--------|----|------------------------|

|                                                         |   | April 30,2010  |     |   | April 30,2009  |   |
|--------------------------------------------------------------|--------|----------------|----------|--------|----------------|--------|
|                                                         |   | (in thousands) |     |   | (in thousands) |   |
| Book value of property and equipment in excess of tax values |   | $              | (62,516) |   |           | $      | (65,651) |   |
| Non-capital loss carry-forward benefit                       |   |           | 15,640   |   |           |   | 11,696 |   |
| Valuation allowance                                          |   |           | (15,640) |   |           |   | (11,696) |   |
|                                                         |   | $              | (62,516) |   |           | $      | (65,651) |   |

----

|   | b) | Deferred income tax benefit differs from that which would be expected from applying the combined effective Canadian federal and provincial income tax rates of 27% (2009 - 27%, 2008 - 27%) to loss from continuing operations before income taxes.  The difference results from the following: |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                  |   | April 30,2010 |     |   | April 30,2009 |   |     | April 30,2008 |   |
|---------------------------------------|--------|---------------|----------|--------|---------------|--------|----------|---------------|--------|
|                                  |   |          |     |   |          |   |     |          |   |
| Expected current income tax benefit   |   | $             | (18,509) |   |          | $      | (28,659) |          |   | $ | (34,225) |   |
| Stock-based compensation              |   |          | 1,508    |   |          |   | 4,720    |          |   |   | 5,629 |   |
| Flow-through expenditures             |   |          | 3,524    |   |          |   | 4,743    |          |   |   | 6,190 |   |
| Change in valuation allowance         |   |          | 3,854    |   |          |   | 3,162    |          |   |   | 621 |   |
| Impact of change in Canadian tax rate |   |          |     |   |          |   | -        |          |   |   | (12,881) |   |
| Other                                 |   |          | (207)    |   |          |   | (1,813)  |          |   |   | 613 |   |
|                                  |   | $             | (9,830)  |   |          | $      | (17,847) |          |   | $ | (34,053) |   |

| 8. | NON-CONTROLLING INTEREST IN OQI SASK |
|----|--------------------------------------|

|                                                                                                              |   | CommonShares |       |   | Amount(in thousands) |   |
|-------------------------------------------------------------------------------------------------------------------|--------|--------------|------------|--------|----------------------|--------|
| Balance, April 30, 2006                                                                                           |   |         | 6,962,459  |   |                 | $      | 4,736 |   |
| Shares issued to non-controlling interests                                                                        |   |         | 5,875      |   |                 |   | 10 |   |
| Shares of net loss of OQI Sask to date of acquisition                                                             |   |         | -          |   |                 |   | (4,722) |   |
| Non-controlling interest in shares issued to OQI                                                                  |   |         | -          |   |                 |   | 16,728 |   |
| Share of net loss of OQI Sask to date of acquisition                                                              |   |         | 6,968,334  |   |                 |   | 16,752 |   |
|                                                                                                              |   |         |       |   |                 |   |   |   |
| Transferred to the OQI Sask property account on acquisition of the non-controlling interest (see note 4(a) and 5) |   |         | (6,968,334 | )      |                 |   | (16,752) |   |
| Balance, April 30, 2007, 2008, 2009 and 2010                                                                      |   |         | -          |   |                 | $      | - |   |

| 9. | OQI SASK OPTIONS AND WARRANTS |
|----|-------------------------------|

----

|                                                              | Number    |   | Weighted AverageExercise Price (CDN) |   |
|-------------------------------------------------------------------|-----------|--------|--------------------------------------|--------|
| Outstanding, April 30, 2006                                       | 700,000   |   | $                                    | 4.00   |   |
| Granted                                                           | 1,280,000 |   | $                                    | 21.40  |   |
| Exercised and exchanged into shares of OQI common stock (note 11) | (205,000) |   | $                                    | 3.32   |   |
| Outstanding, April 30, 2007                                       | 1,775,000 |   | $                                    | 16.55  |   |
| Exercised and exchanged into shares of OQI common stock (note 11) | (135,000) |   | $                                    | 11.63  |   |
| Outstanding, April 30, 2008                                       | 1,640,000 |   | $                                    | 16.96  |   |
| Exercised and exchanged into shares of OQI common stock (note 11) | (125,000) |   | $                                    | 12.50  |   |
| Expired                                                           | (93,333)  |   | $                                    | 25.00  |   |
| Outstanding, April 30, 2009                                       | 1,421,667 |   | $                                    | 16.82  |   |
| Exercised and exchanged into shares of OQI common stock (note 11) | (102,500) |   | $                                    | 1.18   |   |
| Outstanding, April 30, 2010                                       | 1,319,167 |   | $                                    | 18.04  |   |

| Exercise Price (CDN) |   |   | Number Outstanding at April 30, 2010 |   | Number Exercisable at April 30, 2010 |   | Weighted Average Remaining Contractual Life |   | Weighted Average Grant-Date Fair Value (CDN) |   | Aggregate Intinsic Value at April 30, 2010 (CDN) |   |
|----------------------|--------|--------|--------------------------------------|--------|--------------------------------------|--------|---------------------------------------------|--------|----------------------------------------------|--------|--------------------------------------------------|--------|
| $                    | 3.00   |   |                                 |   | 72,500                               |   | 72,500                                 |   | 0.29                                         |   | 2.45                                             |   | 318,183 |   |
| $                    | 6.00   |   |                                 |   | 465,000                              |   | 465,000                                |   | 0.76                                         |   | 5.02                                             |   | 645,758 |   |
| $                    | 25.00  |   |                                 |   | 731,667                              |   | 731,667                                |   | 1.00                                         |   | 26.06                                            |   | - |   |
| $                    | 50.00  |   |                                 |   | 50,000                               |   | 50,000                                 |   | 1.25                                         |   | 34.60                                            |   | - |   |
|                 |   |   |                                 |   | 1,319,167                            |   | 1,319,167                              |   | 0.89                                         |   |                                             |   | 963,941 |   |

|                                       |   | Number |    |   | Weighted AverageExercise Price (CDN) |   |
|--------------------------------------------|--------|--------|---------|--------|--------------------------------------|--------|
| Outstanding, April 30, 2007                |   |   | 16,000  |   |                                 | $      | 2.00 |   |
| Exercised                                  |   |   | (16,000 | )      |                                 | $      | 2.00 |   |
| Outstanding, April 30, 2008, 2009 and 2010 |   |   | -       |   |                                 |   |   |   |

----

| 10. | PREFERRED SHARES |
|-----|------------------|

|   | a) | Series A Preferred Shares |
|--------|----|---------------------------|

|   | b) | Series B Preferred Stock |
|--------|----|--------------------------|

----

|                                                 |   | OQI SaskExchangeableShares |         |   | OQI SaskExchangeableShares issuableon exercise ofOQI Sask optionsand warrants |   |        | Total ExchangeableShares |   |
|------------------------------------------------------|--------|----------------------------|--------------|--------|-------------------------------------------------------------------------------|--------|-------------|--------------------------|--------|
|                                                 |   |                       |         |   |                                                                          |   |        |                     |   |
| Acquisition date, August 14, 2006                    |   |                       | 57,349,388   |   |                                                                          |   | 19,154,916  |                     |   |   | 76,504,304 |   |
| OQI Sask options and warrants exercised              |   |                       | 4,414,986    |   |                                                                          |   | (4,414,986) |                     |   |   | - |   |
| Exchangeable Shares exchanged into OQI common shares |   |                       | (28,237,015) |   |                                                                          |   | -           |                     |   |   | (28,237,015) |   |
| Balance, April 30, 2007                              |   |                       | 33,527,359   |   |                                                                          |   | 14,739,930  |                     |   |   | 48,267,289 |   |
| OQI Sask options and warrants exercised              |   |                       | 1,242,730    |   |                                                                          |   | (1,242,730  | )                        |   |   | - |   |
| Exchangeable shares exchanged into OQI common shares |   |                       | (6,817,249)  |   |                                                                          |   | -           |                     |   |   | (6,817,249) |   |
| Balance, April 30, 2008                              |   |                       | 27,952,840   |   |                                                                          |   | 13,497,200  |                     |   |   | 41,450,040 |   |
| OQI Sask options  exercised                |   |                       | 1,028,750    |   |                                                                          |   | (1,028,750) |                     |   |   | - |   |
| OQI Sask options expired                             |   |                       | -            |   |                                                                          |   | (768,131)   |                     |   |   | (768,131) |   |
| Exchangeable shares exchanged into OQI common shares |   |                       | (3,237,674)  |   |                                                                          |   | -           |                     |   |   | (3,237,674) |   |
| Balance, April 30, 2009                              |   |                       | 25,743,916   |   |                                                                          |   | 11,700,319  |                     |   |   | 37,444,235 |   |
| OQI Sask options exercised                           |   |                       | 843,575      |   |                                                                          |   | (843,575)   |                     |   |   | - |   |
| Exchangeable Shares exchanged into OQI common shares |   |                       | (5,177,556)  |   |                                                                          |   | -           |                     |   |   | (5,177,556) |   |
| Balance, April 30, 2010                              |   |                       | 21,409,935   |   |                                                                          |   | 10,856,744  |                     |   |   | 32,266,679 |   |

| 11. | COMMON STOCK |
|-----|--------------|

|   | a) | Authorized shares of common stock |
|--------|----|-----------------------------------|

|   | b) | Share-based compensation |
|--------|----|--------------------------|

|   | c) | Settlement with Subsidiary Creditors |
|--------|----|--------------------------------------|

----

|   | d) | Private Placements and Public Offerings of Shares of Common Stock |
|--------|----|-------------------------------------------------------------------|

----

|   | e) | Weighted average shares |
|--------|----|-------------------------|

----

|                          |   | Options |        |   | Weighted-AverageExercise Price |   |   | Weighted-AverageGrant-DateFair Value |   |   | Aggregate IntrinsicValue |   |
|-------------------------------|--------|---------|-------------|--------|--------------------------------|--------|--------|--------------------------------------|--------|--------|--------------------------|--------|
|                          |   |    |        |   |                           |   |   |                                 |   |   |                     |   |
| Outstanding at April 30, 2007 |   |    | 10,125,000  |   |                           |   | 5.33   |                                 |   |   |                     |   |   |   |   |   |
| Granted                       |   |    | 5,077,000   |   |                           |   | 4.19   |                                 |   |   | 3.69                     |   |   |   |   |   |
| Exercised                     |   |    | (1,456,250  | )      |                           |   | 2.62   |                                 |   |   |                     |   |   | $ | 3,027,625 |   |
| Forfeited                     |   |    | (718,750    | )      |                           |   | 4.84   |                                 |   |   | 3.72                     |   |   |   |   |   |
| Outstanding at April 30, 2008 |   |    | 13,027,000  |   |                           |   | 5.22   |                                 |   |   |                     |   |   |   |   |   |
| Granted                       |   |    | 13,631,000  |   |                           |   | 3.00   |                                 |   |   | 1.57                     |   |   |   |   |   |
| Exercised                     |   |    | (35,000     | )      |                           |   | 4.72   |                                 |   |   |                     |   |   | $ | 53,100 |   |
| Forfeited                     |   |    | (2,040,038  | )      |                           |   | 4.63   |                                 |   |   | 3.19                     |   |   |   |   |   |
| Outstanding at April 30, 2009 |   |    | 24,582,962  |   |                           | $      | 4.14   |                                 |   | $      | 2.95                     |   |   |   |   |   |
| Granted                       |   |    | 7,037,000   |   |                           |   | 0.98   |                                 |   |   | 0.43                     |   |   |   |   |   |
| Exercised                     |   |    | (964,769)   |   |                           |   | 0.81   |                                 |   |   | 0.73                     |   |   | $ |  359,405 |   |
| Forfeited                     |   |    | (6,921,633) |   |                           |   | 3.58   |                                 |   |   | 2.23                     |   |   |   |   |   |
| Outstanding at April 30, 2010 |   |    | 23,733,560  |   |                           | $      | 3.25   |                                 |   | $      | 2.49                     |   |   |   |   |   |
| Exercisable at April 30, 2010 |   |    | 16,333,562  |   |                           | $      | 3.97   |                                 |   | $      | 3.17                     |   |   | $ | 329,213 |   |

|                    |   | Years Ended April 30, |   |
|-------------------------|--------|-----------------------|--------|
|                    |   | 2010                  |   |   | 2009 |   |   | 2008 |   |
|                    |   |                  |   |   |   |   |   |   |   |
| Expected life (years)   |   |                  | 5.6    |   |   |   | 7.2 |   |   |   | 5 |   |
| Risk free interest rate |   |                  | 2.71   |   |   |   | 3.40 |   |   |   | 4.41 |   |
| Expected volatility     |   |                  | 100    |   |   |   | 84 |   |   |   | 124 |   |
| Dividend yield          |   |                  | -      |   |   |   | - |   |   |   | - |   |
| Grant date fair value   |   | $                     | 0.43   |   |   | $ | 1.93 |   |   | $ | 3.69 |   |

----

| 13. | WARRANTS |
|-----|----------|

|                             |   | Numberof warrants |        |   | Weighted AverageExercise Price |   |
|----------------------------------|--------|-------------------|-------------|--------|--------------------------------|--------|
| Balance, April 30, 2007          |   |              | 8,856,067   |   |                           | $      | 1.98 |   |
| Issued during the year           |   |              | 6,325,000   |   |                           | $      | 6.75 |   |
| Exercised                        |   |              | (8,856,067  | )      |                           | $      | 1.98 |   |
| Balance, April 30, 2008 and 2009 |   |              | 6,325,000   |   |                           | $      | 6.75 |   |
| Issued during the year           |   |              | 17,537,500  |   |                           | $      | 1.10 |   |
| Expired                          |   |              | (6,325,000) |   |                           | $      | 6.75 |   |
| Balance, April 30, 2010          |   |              | 17,537,500  |   |                           | $      | 1.10 |   |

| As of April 30, 2010 (in thousands) |   |
|-------------------------------------|--------|
|                                |   |   |   |   |   |   |   | Fair Value Measures Using: |   |
|                                |   | Carrying Amount |   |   | Total Fair Value |   |   | Quoted Prices In Active Markets (Level 1) |   |   | Significant Other Observable Inputs (Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |
| Financial Assets (Liabilities):     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities Held for Sale            |   |  $ | 65 |   |   | $ | 65 |   |   | $ | 65 |   |   | $ | - |   |   | $ | - |   |
| Asset Retirement Obligation         |   | $ | 17,485 |   |   | $ | 17,485 |   |   | $ | - |   |   | $ | - |   |   | $ | 17,485 |   |

| As of April 30, 2009 (in thousands) |   |
|-------------------------------------|--------|
|                                |   |   |   |   |   |   |   | Fair Value Measures Using: |   |
|                                |   | Carrying Amount |   |   | Total Fair Value |   |   | Quoted Prices In Active Markets (Level 1) |   |   | Significant Other Observable Inputs (Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |
| Financial Assets:                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities Held for Sale            |   |  $ | 60 |   |   |  $ | 60 |   |   |  $ | 60 |   |   | $ | - |   |   | $ | - |   |
| Short-term investment               |   |  $ | 25,209 |   |   |  $ | 25,209 |   |   |  $ | 25,209 |   |   | $ | - |   |   | $ | - |   |

----

| 15. | RELATED PARTY TRANSACTIONS |
|-----|----------------------------|

| 16. | CONTINGENCIES AND COMMITMENTS |
|-----|-------------------------------|

|   |                           |   | As at April 30, 2010 |   |
|--------|--------------------------------|--------|---------------------------|--------|
|   |                           |   | (in thousands)            |   |
|   | Year 1                         |   | $                         | 1,951  |   |
|   | Year 2                         |   |                      | 1,087  |   |
|   | Year 3                         |   |                      | 994    |   |
|   | Year 4                         |   |                      | 991    |   |
|   | Year 5                         |   |                      | 688    |   |
|   |     >5 years |   |                      | 952    |   |
|   |                           |   | $                         | 6,663  |   |

----

| 17. | SUBSEQUENT EVENTS |
|-----|-------------------|

|   | a) | On May 10, 2010, the Company issued 10.5 million flow-through shares at $1.00 CDN ($0.995 USD) and 9.2 million common shares at $0.85 per share for gross proceeds of $18.6 million pursuant to a non-brokered private placement. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | Subsequent to April 30, 2010, 4,411,000 options were issued with a weighted average exercise price of $ 0.81 per option.  Included in these grants were 3,050,000 options that were comprised of a market condition based upon total shareholder return over a three year period and performance conditions based upon achieving a combination of defining a reservoir recover configuration and achieving a defined bitumen in place barrel count. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | On May 31, 2010, the Company relinquished two of its northernmost land permits (PS00213 and PS00215) as it focuses its development opportunities to include those lands that recent exploration activity has demonstrated to be prospective.  Relinquishing these permits will not impact the Company’s resource estimates or development plans.  |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d) | With respect to the purchase and sale agreement made with Canshale Corp., the Company agreed on July 6, 2010 to an extension of the transaction to July 30, 2010 for consideration of an incentive of an additional 2,000,000 common shares of Canshale Corp. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                       |   | FirstQuarter |   |   | SecondQuarter |   |   | ThirdQuarter |   |   | FourthQuarter |   |   | Total  |   |
|----------------------------------------------------------------------------|--------|--------------|--------|--------|---------------|--------|--------|--------------|--------|--------|---------------|--------|--------|--------|--------|
| 2010                                                                       |   |         |   |   |          |   |   |         |   |   |          |   |   |   |   |
| Net loss from continuing operations                                        |   | $            | 4,595  |   |          | $      | 12,679 |         |   | $      | 19,357        |   |   | $      | 22,090 |   |   | $ | 58,721 |   |
| Net loss from discontinued operations                                      |   |         | 202    |   |          |   | 530    |         |   |   | 4,379         |   |   |   | 649    |   |   |   | 5,760 |   |
| Net loss                                                                   |   | $            | 4,797  |   |          | $      | 13,209 |         |   | $      | 23,736        |   |   | $      | 22,739 |   |   | $ | 64,481 |   |
|                                                                       |   |         |   |   |          |   |   |         |   |   |          |   |   |   |   |   |   |   |   |   |
| Net loss from continuing operations per share – basic and diluted    |   | $            | 0.02   |   |          | $      | 0.04   |         |   | $      | 0.06          |   |   | $      | 0.07   |   |   | $ | 0.19 |   |
| Net loss from discontinued operations per share – basic and diluted  |   |         | -      |   |          |   | -      |         |   |   | 0.02          |   |   |   | -      |   |   |   | 0.02 |   |
| Net loss attributable to common stockholders per share - basic and diluted |   | $            | 0.02   |   |          | $      | 0.04   |         |   | $      | 0.08          |   |   | $      | 0.07   |   |   | $ | 0.21 |   |
|                                                                       |   |         |   |   |          |   |   |         |   |   |          |   |   |   |   |   |   |   |   |   |
|                                                                       |   |         |   |   |          |   |   |         |   |   |          |   |   |   |   |   |   |   |   |   |
| 2009                                                                       |   |         |   |   |          |   |   |         |   |   |          |   |   |   |   |   |   |   |   |   |
| Net loss from continuing operations                                        |   | $            | 14,251 |   |          | $      | 42,359 |         |   | $      | 19,193        |   |   | $      | 12,496 |   |   | $ | 88,299 |   |
| Loss from discontinued operations                                          |   |         | 73     |   |          |   | 514    |         |   |   | 103           |   |   |   | 145    |   |   |   | 835 |   |
| Net loss                                                                   |   | $            | 14,324 |   |          | $      | 42,873 |         |   | $      | 19,296        |   |   | $      | 12,641 |   |   | $ | 89,134 |   |
|                                                                       |   |         |   |   |          |   |   |         |   |   |          |   |   |   |   |   |   |   |   |   |
| Net loss from continuing operations per share – basic and diluted    |   | $            | 0.06   |   |          | $      | 0.17   |         |   | $      | 0.07          |   |   | $      | 0.04   |   |   | $ | 0.34 |   |
| Net loss from discontinued operations per share – basic and diluted  |   |         | -      |   |          |   | -      |         |   |   | -             |   |   |   | -      |   |   |   | - |   |
| Net loss per share attributable to common stockholders - basic and diluted |   | $            | 0.06   |   |          | $      | 0.17   |         |   | $      | 0.07          |   |   | $      | 0.04   |   |   | $ | 0.34 |   |

----

|                                                                           |   | TotalAt April 30, |    |
|--------------------------------------------------------------------------------|--------|-------------------|---------|
|                                                                           |   | 2010              |    |   | 2009 |   |
|                                                                           |   | (in thousands)    |    |   | (in thousands) |   |
| Unproved oil and gas properties                                                |   | $                 | 448,780 |   |   | $ | 389,978 |   |
| Proved oil and gas                                                             |   |              | -       |   |   |   | - |   |
|                                                                           |   |              | 448,780 |   |   |   | 389,978 |   |
| Accumulated depreciation, depletion, and amortization and valuation allowances |   |              | -       |   |   |   | - |   |
| Net capitalized costs                                                          |   | $                 | 448,780 |   |   | $ | 389,978 |   |

|                       |   | TotalYear Ended April 30, |   |
|----------------------------|--------|---------------------------|--------|
|                       |   | 2010                      |   |   | 2009 |   |   | 2008 |   |
| Property acquisition costs |   | (in thousands)            |   |   | (in thousands) |   |   | (in thousands) |   |
|   Proved properties   |   | $                         | -      |   |   | $ | - |   |   | $ | - |   |
|   Unproved properties |   |                      | 140    |   |   |   | 5,867 |   |   |   | 15,999 |   |
| Exploration costs          |   |                      | 48,682 |   |   |   | 70,843 |   |   |   | 96,362 |   |
| Development costs          |   |                      | -      |   |   |   | - |   |   |   | - |   |
| Costs incurred             |   | $                         | 48,822 |   |   | $ | 76,710 |   |   | $ | 112,361 |   |

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