Document:

Unassociated Document

    
      
        

      

    

     

    
      	
              10.16

            	
              Assignment
                Agreement dated January 24,
                2007

            

    

    THIS
      ASSIGNMENT MADE EFFECTIVE THE 24th DAY OF JANUARY, 2007.

    

    BETWEEN:

    MOGUL
      ENERGY LTD.

    of
      Vancouver, in the Province of British Columbia

    (hereinafter
      called “MEL or Assignor”)

    

    and
      

    

    MOGUL
      ENERGY INTERNATIONAL, INC.

    of
      Seattle, in the State of Washington, U.S.A.

    (hereinafter
      called “MEII or Assignee”)

    

    WHEREAS
      MEL does hold 25% of the mineral interests in lands as listed on the attached
      Schedule ‘A’, and MEL has agreed to assign unto MEII all of the interests in its
      right, title, estate and interest in, to and under the said leases.

    

    WHERAS
      MEL, pursuant to a Farm Out Agreement with MEII dated November 8, 2005 was
      entitled to an assignment of 25% of the mineral interests in lands as listed
      in
      the attached Schedule “B” (collectively with Schedule “A” herein referred to as
      Leases”) and MEL has agreed to assign unto MEII all of the interests in the
      right, title, estate and interest in, to and under the said Leases in accordance
      with the terms set forth herein and MEII wishes to acquire such
      interest.

    

    NOW,
      THEREFORE, in consideration of the premises and the payment by MEII to MEL
      of
      the sum of 1,000,000 (One Million) common shares of MEII (the “Shares”) within
      10 business days of execution of this agreement, THIS AGREEMENT
      WITNESSTH:

    

    Lease
      Transfer

    

    1.    MEL
      hereby transfers, assigns and sets over unto MEII its right, title and interest
      in, to and under the said Leases and in every extension or renewal thereof
      and
      in all benefit and advantage to be derived therefrom to MEII.

    

    Share
      Transfer:

    

    2.    Upon
      executing this agreement and assignment of the Leases situated in Saskatchewan,
      Canada, MEII shall, within 10 business days of such execution, issue to MEL
      1,000,000 (One Million) common shares of MEII (the “Shares”). 

    

    Securities
      Law Representations.

    

    3.    MEL
      (the
“Subscriber”) represents, warrants and covenants to MEII that:

    

    3.1    
Share
      Acquisition Intent. 
      The
      Subscriber is acquiring the Shares as principal for its own account only and
      not
      with a view to or for distributing or reselling the Shares or any part thereof
      or interest therein. Except as otherwise disclosed in writing to MEII, MEL
      is
      acting jointly or in concert with any other person or company for the purposes
      of acquiring any of the Shares.

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    3.2    
Risk
      Acknowledgement.
      The
      Subscriber acknowledge that the Shares are highly speculative, involving a
      high
      degree of risk and the Subscriber is able to bear the economic risk of owning
      the Shares; and, at the present time, able to afford a complete loss in value
      of
      the Shares.

    

    3.3    
Regulation
      S.
      The
      Subscriber further represents, warrants and acknowledges that:

    

    The
      Shares are being acquired in reliance on the exemptions from the registration
      requirements of the Securities Act of 1933, as amended (the “1933 Act”) provided
      by the provisions of Regulation S as promulgated under the 1933 Act, and that
      the Shares may not be resold in the United States or to a US Person as defined
      in Regulation S, except pursuant to an effective registration statement or
      an
      exemption from the registration provisions of the 1933 Act as evidenced by
      an
      opinion of counsel acceptable to MEII, and that in the absence of an effective
      registration statement covering the Shares or an available exemption from
      registration under the 1933 Act, the Shares must be held indefinitely. The
      Subscriber further acknowledges that this Agreement is not intended as a plan
      or
      scheme to evade the registration requirements of the 1933 Act;

    

    The
      Subscriber is a resident of Canada; The Subscriber is not a “US Person” as that
      term is defined in Rule 902 of Regulation S as promulgated pursuant to the
      1933
      Act;

    

    The
      Subscriber agrees that all offers and sales of the Shares shall be made in
      compliance with all applicable laws of any applicable jurisdiction and,
      particularly, in accordance with Rules 903 and 904, as applicable, of Regulation
      S or pursuant to registration of the Shares under the 1933 Act or pursuant
      to an
      exemption from registration. In any case, none of the Shares have been and
      will
      be offered or sold by the Subscriber to, or for the account or benefit of a
      U.S.
      Person or within the United States until after the end of a one year period
      commencing on the date on which this Agreement is accepted by MEII (the
“Distribution Compliance Period”), except pursuant to an effective registration
      statement as to the Shares or an applicable exemption from the registration
      requirements of the 1933 Act.

    

    The
      Shares have not been offered to the Subscriber in the United States and the
      individual making the decision to purchase the Shares and executing and
      delivering this Agreement on behalf of the Subscriber was not in the United
      States when the decision was made and this Agreement was executed and
      delivered;

    

    The
      Subscriber will not engage in any activity for the purpose of, or that could
      reasonably be expected to have the effect of, conditioning the market in the
      United States for any of the Shares;

    

    Neither
      the Subscriber nor any of their respective affiliates will directly or
      indirectly maintain any short position, purchase or sell put or call options
      or
      otherwise engage in any hedging activities in any of the Shares or any other
      securities of MEII until after the end of the Distribution Compliance Period,
      and acknowledges that such activities are prohibited by Regulation
      S.

    

    3.4    
Canadian
      Law Representations.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (a)    
The
      Subscriber understands that they are acquiring the Shares pursuant to certain
      exemptions from the registration and prospectus requirements of applicable
      securities legislation in Canada (the “Canadian Securities Laws”) afforded by,
      without limitation, Sections 2.3 [Accredited
      Investors],
      2.5
      [Family,
      friends and business associates],
      and
      2.7 [Family,
      friends and business associates
      (Ontario)] of NI 45-106 and, as a consequence, (A) certain rights, remedies
      and
      protections under securities legislation will not be available to the Subscriber
      in connection with the purchase of the Shares; (B) the Subscriber may not
      receive information that would otherwise be required to be provided to them
      under securities legislation; and (C) MEII is relieved from certain obligations
      that would otherwise apply under securities legislation; and

    

    (b)    
The
      Subscriber is acquiring the Shares as principal solely for its own benefit
      and
      not for the benefit of any other person, and not with a view to the resale
      or
      distribution of all or any of the Shares and the Subscriber is (A) an
“accredited investor” as such term is defined in NI 45-106, has executed and
      delivered a duly completed Representation Letter in the form attached hereto
      as
“Exhibits 1.5 (A), (B) or (C)”
as
      applicable, representing that the Subscriber fit within one of the categories
      of
“accredited investor” set forth in such definition and was not created and/or
      used solely to purchase
      or hold the Shares; or (B) satisfies the definition of Family and Friends
      (Alberta and BC) or Family and Friends (Ontario) as applicable in the province
      in which they resides.

    

    3.5    
Transfer
      Restrictions.
      The
      Subscriber acknowledges that the certificates representing Shares shall bear
      a
      legend substantially as follows:

    

    “The
      shares of Stock represented by this Certificate have not been registered under
      the Securities Act of 1933, as amended, and may not be sold or otherwise
      transferred unless a compliance with the registration provisions of such act
      has
      been made or unless availability of an exemption from such registration
      provisions has been established, or, unless sold pursuant to Rule 144 under
      the
      Securities Act of 1933.”

    

    3.6    
Recordation
      of Transfer.
      The
      Subscriber understands and acknowledges that MEII has the right not to record
      a
      purported transfer of the Shares, without MEII being satisfied that such
      transfer is exempt from or not subject to (a) registration under the U.S. 1933
      Act and any applicable state securities laws, and (b) the registration and
      prospectus requirements under Canadian Securities Laws.

    

    3.7    
Canadian
      Resale Restrictions.
      In
      addition to resale restrictions imposed under U.S. securities laws, there are
      additional restrictions on the Subscriber’ ability to resell the Shares under
      applicable Canadian Securities Law. 

    

    3.8    
No
      Registration Rights. The
      Subscriber understands and acknowledges that MEII is not obligated to file
      and
      has no present intention of filing any registration statement or prospectus
      in
      respect of re-sales of the Shares with the SEC in the United States or with
      any
      of the provincial securities regulatory authorities in Canada.

    

    3.9    
Legal
      Counsel.
      The
      Subscriber confirm that it has been advised to consult its own legal and
      financial advisors with respect to the suitability of the Shares for the
      Subscriber and the resale restrictions (including “hold periods”) to which the
      Shares will be subject under applicable securities legislation and confirms
      that
      no representation has been made to the Subscriber by or on behalf of MEII with
      respect thereto.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    3.10   No
      Offering Memorandum. The
      Subscriber acknowledge that the issuance of the Shares is being conducted
      without delivery of an offering memorandum and that it has not relied on any
      oral representation, warranty or information in connection with the offering
      of
      the Shares by MEII, or any officer, employee, agent, affiliate or subsidiary
      of
      MEII.

    

    3.11   No
      Approval by Regulatory Authority. The
      Subscriber understand that no securities commission, stock exchange,
      governmental agency, regulatory body or similar authority has made any finding
      or determination or expressed any opinion with respect to the merits of the
      acquisition of the Shares.

    

    3.12   No
      Representation as to Value of the Shares. The
      Subscriber confirm that neither MEII nor any of its directors, employees,
      officers, consultants, agents or affiliates, has made any representations
      (written or oral) to the Subscriber regarding the future value of the Shares
      and
      acknowledges and confirms that no representation has been made to the Subscriber
      with respect to the listing of the Shares on any exchange or that application
      has been or will be made be made for such listing. In making its acquisition
      with respect to the Shares, the Subscriber has relied solely upon publicly
      available information relating to MEII and not upon any verbal or written
      representation made by or on behalf of MEII.

    

    3.13   Conditional
      Sale. The
      Subscriber understand that the sale and delivery of the Shares is conditional
      upon such sale being exempt from the registration and prospectus requirements
      under applicable securities legislation or upon the issuance of such orders,
      consents or approvals as may be required to permit such sale and delivery
      without complying with such requirements. If required under applicable
      securities legislation or regulatory policy, or by any securities commission,
      stock exchange or other regulatory authority, the Subscriber will execute,
      deliver, file and otherwise assist MEII in filing such reports, undertakings
      and
      other documents with respect to the issue of the Shares.

    

    3.14   Tax
      Consequences. The
      Subscriber understand that the acquisition of the Shares may have tax
      consequences under applicable taxation laws, that they are the sole
      responsibility of the Subscriber to determine and assess such tax consequences
      as may apply to their respective particular circumstances, and the Subscriber
      has not received and is not relying on MEII for any tax advice
      whatsoever.

    

    3.15   Re-Sales.
      The
      Subscriber will not resell any Shares except in accordance with the provisions
      of applicable securities legislation, rules and regulations and stock exchange
      rules.

    

    General
      Matters

    

    4.    MEL
      covenants that it has not transferred, assigned, hypothecated or otherwise
      parted with any of its interest in the said Leases and that, subject to the
      terms and provisions of the said Leases, it now has good right, full power
      and
      absolute authority to transfer, set over and assign its interest in the said
      Leases to MEII in the manner aforesaid according to the true intent and meaning
      of this assignment.

    

    5.    Subject
      to the performance by MEII of the covenants and conditions contained in the
      said
      Leases, MEII shall hold and enjoy the interest conveyed to it hereunder for
      the
      residue of the term of the said Leases and every extension or renewal thereof
      for its own use and benefit by, through or under it. MEII for its part covenants
      with MEL that it will be bound by, observe and perform the Lessee’s covenants
      and agreements in the said Leases reserved and contained and MEII agrees to
      indemnify and save harmless MEL from and against the observation and performance
      of the said covenants and agreements from and after the effective date of this
      agreement.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    6.    Each
      of
      the parties hereto shall from time to time and at all times hereafter do all
      such further acts and execute and deliver all such further deeds and documents
      as shall be reasonably required in order to fully perform and carry out the
      terms of this agreement.

    

    7.    It
      is
      hereby agreed that this assignment shall enure to the benefit of and be binding
      upon the parties hereto, their successors and assigns.

    

    

    IN
      WITNESS WHEREOF the parties hereto have caused their corporate seals to be
      hereunto affixed, attested by the hands of their respective proper officers
      duly
      authorized in that behalf, effective the date and year above
      written.

    

    

    SIGNED,
      SEALED AND DELIVERED,

    

    
      	 	
              ASSIGNOR:

            
	 	
              MOGUL
                ENERGY LTD.

            
	 	 	 	 
	 	 	 	 
	 	
              Per:

            	
              /s/
                Parvez Tyab

            	 
	 	 	 	 
	 	
              ASSIGNEE:

            
	 	
              MOGUL
                ENERGY INTERNATIONAL, INC.

            
	 	 	 	 
	 	 	 	 
	 	
              Per:

            	
              /s/
                Naeem Tyab

            	 

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    SCHEDULE
      ‘A’ - To the Assignment

    

    Attached
      to and forming part of an Assignment of Lease made effective the 24th day of
      January, 2007 between Mogul Energy Ltd., as Assignor, and Mogul Energy
      International, Inc., as Assignee.

    

    
      	
              Legal
                Description

               

            	
              Parcel
                No.

            	
              Lessor

            	
              Interest

            	
              Lease
                Date

            	
              Net
                Acres

            
	
              SE
                13-9-30 W1M

            	
              112507365

            	
              William
                George Jamieson

            	
              25%
                M&M

            	
              February
                20, 2006

            	
              40.0

            
	
              SE
                13-9-30 W1M

            	
              112507365

            	
              Lee
                Harris and Nancy Andrews

            	
              25%
                M&M

            	
              February
                22, 2006

            	
              40.0

            
	
              SE
                13-9-30 W1M

            	
              112507365

            	
              Floyd
                Edward Jamieson

            	
              25%
                M&M

            	
              February
                23, 2006

            	
              40.0

            
	
              SE
                13-9-30 W1M

            	
              112507365

            	
              Isabel
                Poitras

            	
              25%
                M&M

            	
              March
                9, 2006

            	
              40.0

            
	
              SW
                13-9-30 W1M

            	
              112507376

            	
              Floyd
                Edward Jamieson

            	
              25%
                M&M

            	
              February
                23, 2006

            	
              40.0

            
	
              SW
                13-9-30 W1M

            	
              112507376

            	
              Lee
                Harris and Nancy Andrews

            	
              25%
                M&M

            	
              February
                22, 2006

            	
              40.0

            
	
              SW
                13-9-30 W1M

            	
              112507376

            	
              William
                George Jamieson

            	
              25%
                M&M

            	
              February
                20, 2006

            	
              40.0

            
	
              SW
                13-9-30 W1M

            	
              112507376

            	
              Isabel
                Poitras

            	
              25%
                M&M

            	
              March
                9, 2006

            	
              40.0

            
	
              NE
                21-9-30 W1M

            	
              112506432

            	
              Clarence
                Billard, Personal Representative for the estate of Walter A.
                Barness

            	
              100%
                M&M

            	
              February
                20, 2006

            	
              160.0

            
	
              NW
                23-9-30 W1M

            	
              112507837

            	
              Alice
                May Mangelsen, Randolph Peter Mangelsen and Alice Faye
                Rowley

            	
              100%
                M&M

            	
              February
                28, 2006

            	
              160.0

            
	
              SW
                23-9-30 W1M

            	
              112507848

            	
              Alice
                May Mangelsen, Randolph Peter Mangelsen and Alice Faye
                Rowley

            	
              100%
                M&M

            	
              February
                28, 2006

            	
              160.0

            
	
              NE
                33-9-30 W1M

            	
              112507129

            	
              Clarence
                Billard, Personal Representative for the estate of Walter A.
                Barness

            	
              100%
                M&M

            	
              February
                20, 2006

            	
              160.0

            
	
              NW
                33-9-30 W1M

            	
              112506331

            	
              Clarence
                Billard, Personal Representative for the estate of Walter A.
                Barness

            	
              100%
                M&M

            	
              February
                20, 2006

            	
              160.0

            
	
              SE
                33-9-30 W1M

            	
              112507398

            	
              Clarence
                Billard, Personal Representative for the estate of Walter A.
                Barness

            	
              100%
                M&M

            	
              February
                20, 2006

            	
              160.0

            
	
              NE
                17-9-31 W1M

            	
              112603340

            	
              Dennis
                Swallow and Donald Swallow

            	
              100%
                M&M

            	
              December
                5, 2005

            	
              160.0

            
	
              NW
                17-9-31 W1M

            	
              112603351

            	
              Dennis
                Swallow and Donald Swallow

            	
              100%
                M&M

            	
              December
                5, 2005

            	
              160.0

            
	
              SE
                17-9-31 W1M

            	
              112603362

            	
              Dennis
                Swallow and Donald Swallow

            	
              100%
                M&M

            	
              December
                5, 2005

            	
              160.0

            
	
              SW
                17-9-31 W1M

            	
              112603373

            	
              Dennis
                Swallow and Donald Swallow

            	
              100%
                M&M

            	
              December
                5, 2005

            	
              160.0

            
	
              SE
                13-9-33 W1M

            	
              112636649

            	
              Alexander
                Lee Harris

            	
              50%
                M&M

            	
              February
                22, 2006

            	
              80.0

            
	
              SE
                13-9-33 W1M

            	
              112636649

            	
              Nancy
                Ann Andrews

            	
              50%
                M&M

            	
              March
                7, 2006

            	
              80.0

            
	
              SW
                13-9-33 W1M

            	
              112636650

            	
              Nancy
                Ann Andrews

            	
              50%
                M&M

            	
              March
                7, 2006

            	
              80.0

            
	
              SW
                13-9-33 W1M

            	
              112636650

            	
              Alexander
                Lee Harris

            	
              50%
                M&M

            	
              February
                22, 2006

            	
              80.0

            
	
              SE
                13-10-30 W1M

            	
              112596509

            	
              Lily
                Kropp

            	
              100%
                M&M

            	
              February
                24, 2006

            	
              160.0

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    
      	
              Legal
                Description

               

            	
              Parcel
                No.

            	
              Lessor

            	
              Interest

            	
              Lease
                Date

            	
              Net
                Acres

            
	
              NE
                21-10-30 W1M

            	
              112597162

            	
              Gerald
                Henry McAdoo and 

              Verla
                Isobel Smith

            	
              100%
                M&M

            	
              March
                8, 2006

            	
              160.0

            
	
              NW
                21-10-30 W1M

            	
              112597173

            	
              Gerald
                Henry McAdoo and

              Verla
                Isobel Smith

            	
              100%
                M&M

            	
              March
                8, 2006

            	
              160.0

            
	
              SW
                28-10-30 W1M

            	
              112597184

            	
              Gerald
                Henry McAdoo and

              Verla
                Isobel Smith

            	
              100%
                M&M

            	
              March
                8, 2006

            	
              160.0

            
	
              NE
                32-10-30 W1M

            	
              114264413

            	
              Daryl
                M. Kay

            	
              50%
                M&M Exc. Coal

            	
              March
                1, 2006

            	
              80.0

            
	
              NW
                32-10-30 W1M

            	
              114264435

            	
              Daryl
                McArthur Kay

            	
              50%
                M&M Exc. Coal

            	
              March
                1, 2006

            	
              80.0

            
	
              SW
                32-10-30 W1M

            	
              114264424

            	
              Daryl
                McArthur Kay

            	
              50%
                M&M Exc. Coal

            	
              March
                1, 2006

            	
              80.0

            
	
              NW
                33-10-30 W1M

            	
              112596723

            	
              Daryl
                Kay

            	
              50%
                M&M

            	
              March
                1, 2006

            	
              80.0

            
	
              SW
                33-10-30 W1M

            	
              112596734

            	
              Daryl
                Kay

            	
              50%
                M&M

            	
              March
                1, 2006

            	
              80.0

            
	
              NW
                19-10-32 W1M

            	
              112464772

            	
              Lyle
                Mielitz

            	
              1/3
                M&M

            	
              January
                1, 2006

            	
              51.32

            
	
              NW
                19-10-32 W1M

            	
              112464772

            	
              Carol
                Howarth

            	
              1/3
                M&M

            	
              January
                1, 2006

            	
              51.32

            
	
              NW
                19-10-32 W1M

            	
              112464772

            	
              Ronald
                Mielitz

            	
              1/3
                M&M

            	
              January
                1, 2006

            	
              51.32

            
	
              SE
                19-10-32 W1M

            	
              114190714

            	
              Lyle
                Mielitz

            	
              1/6
                M&M Exc. Coal

            	
              January
                1, 2006

            	
              27.00

            
	
              SE
                19-10-32 W1M

            	
              114190714

            	
              Carol
                Howarth

            	
              1/6
                M&M Exc. Coal

            	
              January
                1, 2006

            	
              27.00

            
	
              SE
                19-10-32 W1M

            	
              114190714

            	
              Ronald
                Mielitz

            	
              1/6
                M&M Exc. Coal

            	
              January
                1, 2006

            	
              27.00

            
	
              SW
                19-10-32 W1M

            	
              114190725

            	
              Ronald
                Mielitz

            	
              1/3
                M&M

            	
              January
                1, 2006

            	
              51.32

            
	
              SW
                19-10-32 W1M

            	
              114190725

            	
              Carol
                Howarth

            	
              1/3
                M&M

            	
              January
                1, 2006

            	
              51.32

            
	
              SW
                19-10-32 W1M

            	
              114190725

            	
              Lyle
                Mielitz

            	
              1/3
                M&M

            	
              January
                1, 2006

            	
              51.32

            
	
              NW
                23-10-32 W1M

            	
              112464615

            	
              James
                Oliver (Younger)

            	
              100%
                M&M

            	
              January
                1, 2006

            	
              160.0

            
	
              SW
                23-10-32 W1M

            	
              112464626

            	
              Ronald
                Earl Oliver and Gloria Jean Oliver

            	
              100%
                M&M

            	
              January
                1, 2006

            	
              160.0

            
	
              SW
                25-10-32 W1M

            	
              112464558

            	
              Ronald
                Earl Oliver and Gloria Jean Oliver

            	
              100%
                M&M

            	
              January
                1, 2006

            	
              160.0

            
	
              SW
                26-10-32 W1M

            	
              112464514

            	
              Judy
                Lynn Sauter, Stacey Lee Sauter, 

              Starla
                Rae Sauter and Sharah Lyn Milleker

            	
              50%
                M&M

            	
              January
                4, 2006

            	
              80.0

            
	
              SE
                26-10-32 W1M

            	
              112464547

            	
              Keith
                George Kennedy

            	
              50%
                M&M

            	
              November
                3, 2005

            	
              80.0

            
	 	 	 	 	 	 

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    
      	
              Legal
                Description

               

            	
              Parcel
                No.

            	
              Lessor

            	
              Interest

            	
              Lease
                Date

            	
              Net
                Acres

            
	
              LSD
                10 & 15-31-10-32 W1M

              W
                1/2 31-10-32 W1M

            	
              112581794

              112581806

              112581828

              112581817

            	
              Dale
                Jensen

            	
              3/40
                M&M

            	
              December
                12, 2005

            	
              17.7

            
	
              LSD
                10 & 15-31-10-32 W1M

              W
                1/2 31-10-32 W1M

            	
              112581794

              112581806

              112581828

              112581817

            	
              Garry
                Jensen

            	
              5/40
                M&M

            	
              December
                12, 2006

            	
              29.38

            
	
              LSD
                10 & 15-31-10-32 W1M

              W
                1/2 31-10-32 W1M

            	
              112581794

              112581806

              112581828

              112581817

            	
              Lydia
                Marshall

            	
              3/40
                M&M

            	
              March
                7, 2006

            	
              17.7

            
	
              NE
                33-10-32 W1M

            	
              111726839

            	
              Joseph
                Frederick Bil (Younger)

            	
              50%
                M&M Exc. Coal

            	
              November
                16, 2005

            	
              80.0

            
	
              NE
                19-11-31 W1M

            	
              112542465

            	
              Gerald
                Skulmoski

            	
              100%
                M&M

            	
              December
                12, 2005

            	
              160.0

            
	
              NE
                2-11-32 W1M

            	
              112613284

            	
              The
                Great-West Life Assurance Company

            	
              100%
                M&M

            	
              January
                1, 2006

            	
              158.06

            
	
              SE
                2-11-32 W1M

            	
              112613295

            	
              The
                Great-West Life Assurance Company

            	
              100%
                M&M

            	
              January
                1, 2006

            	
              158.9

            
	
              SE
                3-11-32 W1M

            	
              112612665

            	
              Frank
                Herbert Adamson

            	
              100%
                M&M

            	
              January
                1, 2006

            	
              160.0

            
	
              SW
                3-11-32 W1M

            	
              112612676

            	
              Frank
                Herbert Adamson

            	
              100%
                M&M

            	
              January
                1, 2006

            	
              160.0

            
	
              NE
                5-11-32 W1M

            	
              112613239

            	
              James
                Burke

            	
              100%
                M&M

            	
              November
                2, 2005

            	
              18.0

            
	
              NE
                5-11-32 W1M

            	
              112613172

            	
              Clifford
                Leonard Robertson and 

              Margaret
                Isabel Robertson

            	
              100%
                M&M

            	
              March
                1, 2006

            	
              142.4

            
	
              SW
                5-11-32 W1M

            	
              114236827

            	
              John
                Anthony McWhirter

            	
              100%
                M&M

            	
              March
                1, 2006

            	
              4.14

            
	
              NE
                7-11-32 W1M

            	
              112612991

            	
              Philip
                Green (Younger)

            	
              50%
                M&M

            	
              November
                29, 2005

            	
              80.0

            
	
              NE
                7-11-32 W1M

            	
              112612991

            	
              Elizabeth
                Louise Witchey

            	
              25%
                M&M

            	
              November
                28, 2005

            	
              40.0

            
	
              NW
                7-11-32 W1M

            	
              112613015

            	
              Philip
                Green (Younger)

            	
              50%
                M&M

            	
              November
                29, 2005

            	
              83.19

            
	
              NW
                7-11-32 W1M

            	
              112613015

            	
              Elizabeth
                Louise Witchey

            	
              25%
                M&M

            	
              November
                28, 2005

            	
              41.6

            
	
              SE
                7-11-32 W1M

            	
              112613004

            	
              Philip
                Green (Younger)

            	
              50%
                M&M

            	
              November
                29, 2005

            	
              80.0

            
	
              SE
                7-11-32 W1M

            	
              112613004

            	
              Elizabeth
                Louise Witchey

            	
              25%
                M&M

            	
              November
                28, 2005

            	
              40.0

            
	
              SW
                7-11-32 W1M

            	
              112613026

            	
              Philip
                Green (Younger)

            	
              50%
                M&M

            	
              November
                29, 2005

            	
              83.33

            
	
              SW
                7-11-32 W1M

            	
              112613026

            	
              Elizabeth
                Louise Witchey

            	
              25%
                M&M

            	
              November
                28, 2005

            	
              41.67

            
	
              NE
                9-11-32 W1M

            	
              161539678

              161539689

            	
              Leland
                North

            	
              25%
                M&M

            	
              November
                28, 2005

            	
              40.0

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    
      	
              Legal
                Description

               

            	
              Parcel
                No.

            	
              Lessor

            	
              Interest

            	
              Lease
                Date

            	
              Net
                Acres

            
	
              NE
                9-11-32 W1M

            	
              112612575

            	
              Paulette
                Christine North

            	
              25%
                M&M

            	
              November
                21, 2005

            	
              40.0

            
	
              NE
                9-11-32 W1M

            	
              112612575

            	
              Marguerite
                Anne Van Dresar

            	
              25%
                M&M

            	
              November
                21, 2005

            	
              40.0

            
	
              NE
                9-11-32 W1M

            	
              112612575

            	
              John
                Charles Yeo

            	
              25%
                M&M

            	
              November
                22, 2005

            	
              40.0

            
	
              NW
                9-11-32 W1M

            	
              112612553

            	
              Steve
                Zyla

            	
              100%
                M&M

            	
              November
                30, 2005

            	
              160.0

            
	
              SE
                9-11-32 W1M

            	
              112612586

            	
              Paulette
                Christine North

            	
              25%
                M&M

            	
              November
                21, 2005

            	
              40.0

            
	
              SE
                9-11-32 W1M

            	
              112612586

            	
              Leland
                North

            	
              25%
                M&M

            	
              November
                28, 2005

            	
              40.0

            
	
              SE
                9-11-32 W1M

            	
              112612586

            	
              Marguerite
                Anne Van Dresar

            	
              25%
                M&M

            	
              November
                21, 2005

            	
              40.0

            
	
              SE
                9-11-32 W1M

            	
              112612586

            	
              John
                Charles Yeo

            	
              25%
                M&M

            	
              November
                22, 2005

            	
              40.0

            
	
              SW
                9-11-32 W1M

            	
              112612564

            	
              John
                Zyla

            	
              100%
                M&M

            	
              November
                28, 2005

            	
              160.0

            
	
              NE
                10-11-32 W1M

            	
              112612496

            	
              Neil
                Peter McConnachie

            	
              1/3
                M&M

            	
              December
                15, 2005

            	
              54.0

            
	
              NE
                10-11-32 W1M

            	
              112612496

            	
              Corinne
                Diana McConnachie

            	
              1/3
                M&M

            	
              December
                21, 2005

            	
              54.0

            
	
              NE
                10-11-32 W1M

            	
              112612496

            	
              Clinton
                Cory McConnachie

            	
              1/3
                M&M

            	
              January
                5, 2006

            	
              54.0

            
	
              NW
                10-11-32 W1M

            	
              114236793

              114236782

            	
              Neil
                Peter McConnachie

            	
              1/6
                M&M Exc. Coal

            	
              December
                15, 2005

            	
              25.6

            
	
              NW
                10-11-32 W1M

            	
              114236793

              114236782

            	
              Corine
                Diana McConnachie

            	
              1/6
                M&M Exc. Coal

            	
              December
                21, 2005

            	
              25.6

            
	
              NW
                10-11-32 W1M

            	
              114236793

              114236782

            	
              Clinton
                Cory McConnachie

            	
              1/6
                M&M Exc. Coal

            	
              January
                5, 2006

            	
              25.6

            
	
              SW
                10-11-32 W1M

            	
              114236805

            	
              Neil
                Peter McConnachie

            	
              1/6
                M&M Exc. Coal

            	
              December
                15, 2005

            	
              27.0

            
	
              SW
                10-11-32 W1M

            	
              114236805

            	
              Corinne
                Diana McConnachie

            	
              1/6
                M&M Exc. Coal

            	
              December
                21, 2005

            	
              27.0

            
	
              SW
                10-11-32 W1M

            	
              114236805

            	
              Clinton
                Cory McConnachie

            	
              1/6
                M&M Exc. Coal

            	
              January
                5, 2006

            	
              27.0

            
	
              NE
                12-11-32 W1M

            	
              111444320

            	
              Robert
                Matthew Clay

            	
              50%
                M&M

            	
              January
                1, 2006

            	
              80.0

            
	
              NE
                14-11-32 W1M

            	
              111308307

            	
              Kenneth
                Archibald McCannel

            	
              100%
                M&M

            	
              November
                22, 2005

            	
              160.0

            
	
              NW
                14-11-32 W1M

            	
              111308295

            	
              Barbara
                Margaret Elizabeth McCannel

            	
              100%
                M&M

            	
              November
                16, 2005

            	
              160.0

            
	
              NE
                15-11-32 W1M

            	
              114236748

            	
              Cornelius
                David Rempel and Faye Marie Rempel

            	
              50%
                M&M Exc. Coal

            	
              November
                2, 2005

            	
              80.0

            
	
              NW
                15-11-32 W1M

            	
              114236759

            	
              Cornelius
                David Rempel and Faye Marie Rempel

            	
              50%
                M&M Exc. Coal

            	
              November
                2, 2005

            	
              80.0

            
	
              NE
                17-11-32 W1M

            	
              114236681

              114236670

            	
              Mike
                Hajewich, Peter Hajewich and Elsie Hood

            	
              50%
                M&M Exc. Coal

            	
              March
                1, 2006

            	
              78.75

            
	
              NW
                17-11-32 W1M

            	
              114236704

              114236692

            	
              Mike
                Hajewich, Peter Hajewich and Elsie Hood

            	
              50%
                M&M Exc. Coal

            	
              March
                1, 2006

            	
              76.69

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    
      	
              Legal
                Description

               

            	
              Parcel
                No.

            	
              Lessor

            	
              Interest

            	
              Lease
                Date

            	
              Net
                Acres

            
	
              SE
                17-11-32 W1M

            	
              114236726

              114236715

            	
              Mike
                Hajewich, Peter Hajewich and Elsie Hood

            	
              50%
                M&M Exc. Coal

            	
              March
                1, 2006

            	
              77.94

            
	
              SW
                17-11-32 W1M

            	
              114236737

            	
              Mike
                Hajewich, Peter Hajewich and Elsie Hood

            	
              50%
                M&M

            	
              March
                1, 2006

            	
              80.0

            
	
              NE
                18-11-32 W1M

            	
              112612104

            	
              Donald
                Keith

            	
              100%
                M&M

            	
              December
                9, 2005

            	
              10.02

            
	
              NW
                18-11-32 W1M

            	
              112612823

            	
              Gertrude
                Condie

            	
              100%
                M&M

            	
              November
                2, 2005

            	
              165.76

            
	
              NE
                19-11-32 W1M

            	
              112612913

            	
              Audrey
                May Johnson

            	
              100%
                M&M

            	
              March
                1, 2006

            	
              160.0

            
	
              SE
                19-11-32 W1M

            	
              112612070

            	
              Donald
                Keith

            	
              100%
                M&M

            	
              November
                19, 2005

            	
              158.83

            
	
              SW
                19-11-32 W1M

            	
              112612081

            	
              Donald
                Keith

            	
              100%
                M&M

            	
              November
                19, 2005

            	
              158.7

            
	
              NE
                20-11-32 W1M

            	
              112612025

            	
              Donald
                Gary Oliver and Calvin David Oliver

            	
              50%
                M&M Exc. Coal

            	
              November
                30, 2005

            	
              80.0

            
	
              NW
                20-11-32 W1M

            	
              112612036

            	
              Donald
                Gary Oliver and Calvin David Oliver

            	
              50%
                M&M Exc. Coal

            	
              November
                30, 2005

            	
              80.0

            
	
              NE
                21-11-32 W1M

            	
              112612014

            	
              Sylvia
                Edith Adamson

            	
              50%
                M&M

            	
              October
                27, 2005

            	
              80.0

            
	
              NE
                21-11-32 W1M

            	
              112612014

            	
              Robert
                Lionel Burke

            	
              50%
                M&M

            	
              November
                16, 2005

            	
              80.0

            
	
              NW
                21-11-32 W1M

            	
              112612801

            	
              Robert
                Lionel Burke

            	
              50%
                M&M

            	
              November
                16, 2005

            	
              80.0

            
	
              NW
                21-11-32 W1M

            	
              112612801

            	
              Syliva
                Edith Adamson

            	
              50%
                M&M

            	
              October
                27, 2005

            	
              80.0

            
	
              NE
                23-11-32 W1M

            	
              114236625

            	
              Donald
                Field

            	
              50%
                M&M Exc. Coal

            	
              November
                30, 2005

            	
              80.0

            
	
              NW
                23-11-32 W1M

            	
              112612755

            	
              Judith
                Anne Guest

            	
              1/3
                M&M

            	
              November
                20, 2005

            	
              53.34

            
	
              NW
                23-11-32 W1M

            	
              112612755

            	
              Laura
                Jean Westbrook

            	
              1/3
                M&M

            	
              December
                12, 2005

            	
              53.34

            
	
              NW
                23-11-32 W1M

            	
              112612755

            	
              John
                Douglas McVeigh

            	
              1/3
                M&M

            	
              December
                7, 2005

            	
              53.34

            
	
              SE
                23-11-32 W1M

            	
              114236636

            	
              Donald
                Field

            	
              50%
                M&M Exc. Coal

            	
              November
                30, 2005

            	
              80.0

            
	
              SW
                23-11-32 W1M

            	
              112612766

            	
              John
                Douglas McVeigh

            	
              1/3
                M&M

            	
              December
                7, 2005

            	
              53.34

            
	
              SW
                23-11-32 W1M

            	
              112612766

            	
              Judith
                Anne Guest

            	
              1/3
                M&M

            	
              November
                20, 2005

            	
              53.34

            
	
              SW
                23-11-32 W1M

            	
              112612766

            	
              Laura
                Jean Westbrook

            	
              1/3
                M&M

            	
              December
                12, 2005

            	
              53.34

            
	
              NE
                26-11-32 W1M

            	
              112611990

            	
              Cornelius
                David Rempel and Faye Marie Rempel

            	
              100%
                M&M

            	
              November
                2, 2005

            	
              160.0

            
	
              NW
                26-11-32 W1M

            	
              111308127

            	
              Caroline
                May Cawood

            	
              25%
                M&M Exc. Coal

            	
              January
                7, 2006

            	
              40.0

            
	
              NW
                26-11-32 W1M

            	
              111308127

            	
              Kathryn
                Maureen Yeo

            	
              25%
                M&M Exc. Coal

            	
              January
                9, 2006

            	
              40.0

            
	
              SE
                26-11-32 W1M

            	
              112612003

            	
              Cornelius
                David Rempel and Faye Marie Rempel

            	
              100%
                M&M

            	
              November
                2, 2005

            	
              160.0

            

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    
      	
              Legal
                Description

               

            	
              Parcel
                No.

            	
              Lessor

            	
              Interest

            	
              Lease
                Date

            	
              Net
                Acres

            
	
              SW
                26-11-32 W1M

            	
              111308116

            	
              Caroline
                May Cawood

            	
              25%
                M&M Exc. Coal

            	
              January
                7, 2006

            	
              40.0

            
	
              SW
                26-11-32 W1M

            	
              111308116

            	
              Kathryn
                Maureen Yeo

            	
              25%
                M&M Exc. Coal

            	
              January
                9, 2006

            	
              40.0

            
	
              SE
                27-11-32 W1M

            	
              112612777

            	
              Judith
                Anne Guest

            	
              1/3
                M&M

            	
              December
                15, 2005

            	
              53.34

            
	
              SE
                27-11-32 W1M

            	
              112612777

            	
              John
                Douglas McVeigh

            	
              1/3
                M&M

            	
              December
                7, 2005

            	
              53.34

            
	
              SE
                27-11-32 W1M

            	
              112612777

            	
              Laura
                Jean Westbrook

            	
              1/3
                M&M

            	
              December
                12, 2005

            	
              53.34

            
	
              SW
                30-11-32 W1M

            	
              112612160

            	
              The
                Great-West Life Assurance Company

            	
              100%
                M&M

            	
              November
                16, 2005

            	
              160.0

            
	
              NW
                31-11-32 W1M

            	
              112612171

            	
              Albert
                E. Preston

            	
              100%
                M&M

            	
              October
                31, 2005

            	
              160.0

            
	
              SE
                31-11-32 W1M

            	
              114236603

            	
              Arthur
                Cameron Preston

            	
              50%
                M&M Exc. Coal

            	
              October
                31, 2005

            	
              80.0

            
	
              SW
                31-11-32 W1M

            	
              114236614

            	
              Arthur
                Cameron Preston

            	
              100%
                M&M

            	
              October
                31, 2005

            	
              160.0

            
	
              NE
                35-11-32 W1M

            	
              111307283

            	
              Caroline
                May Cawood

            	
              25%
                M&M Exc. Coal

            	
              January
                7, 2006

            	
              40.22

            
	
              NE
                35-11-32 W1M

            	
              111307283

            	
              Kathryn
                Maureen Yeo

            	
              25%
                M&M Exc. Coal

            	
              January
                9, 2006

            	
              40.22

            
	
              NW
                35-11-32 W1M

            	
              111307294

            	
              Caroline
                May Cawood

            	
              25%
                M&M Exc. Coal

            	
              January
                7, 2006

            	
              40.2

            
	
              NW
                35-11-32 W1M

            	
              111307294

            	
              Kathryn
                Maureen Yeo

            	
              25%
                M&M Exc. Coal

            	
              January
                9, 2006

            	
              40.2

            
	
              SE
                35-11-32 W1M

            	
              111307306

            	
              Caroline
                May Cawood

            	
              25%
                M&M Exc. Coal

            	
              January
                7, 2006

            	
              40.2

            
	
              SE
                35-11-32 W1M

            	
              111307306

            	
              Kathryn
                Maureen Yeo

            	
              25%
                M&M Exc. Coal

            	
              January
                9, 2006

            	
              40.2

            
	
              SW
                35-11-32 W1M

            	
              111615386

            	
              James
                C. Scharren

            	
              100%
                M&M

            	
              November
                8, 2005

            	
              161.0

            
	
              SW
                36-11-32 W1M

            	
              112612890

            	
              Keith
                Kennedy and Helena Kennedy

            	
              50%
                M&M Exc. Coal

            	
              November
                3, 2005

            	
              80.0

            
	
              NE
                2-12-32 W1M

            	
              111307317

            	
              Micky
                Lee Grimes

            	
              50%
                M&M

            	
              March
                15, 2006

            	
              80.0

            
	
              NE
                2-12-32 W1M

            	
              111307317

            	
              Cody
                Paul Grimes

            	
              50%
                M&M

            	
              March
                15, 2006

            	
              80.0

            
	
              NW
                2-12-32 W1M

            	
              111307328

            	
              Vernon
                Nelson Nabholz

            	
              100%
                M&M 

            	
              March
                2, 2006

            	
              160.0

            
	
              SE
                3-12-32 W1M

            	
              111376403

            	
              Vernon
                Nelson Nabholz

            	
              50%
                M&M Exc. Coal

            	
              March
                2, 2006

            	
              80.0

            
	
              NE
                3-12-32 W1M

            	
              111376391

            	
              Vernon
                Nelson Nabholz

            	
              50%
                M&M Exc. Coal

            	
              March
                2, 2006

            	
              80.0

            

    

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    
      	
              Legal
                Description

               

            	
              Parcel
                No.

            	
              Lessor

            	
              Interest

            	
              Lease
                Date

            	
              Net
                Acres

            
	
              NW
                3-12-32 W1M

            	
              111376414

              111376447

            	
              Vernon
                Nelson Nabholz

            	
              50%
                M&M Exc. Coal

            	
              March
                2, 2006

            	
              80.0

            
	
              SW
                3-12-32 W1M

            	
              111376425

              111376436

            	
              Vernon
                Nelson Nabholz

            	
              50%
                M&M Exc.Coal

            	
              March
                2, 2006

            	
              80.0

            
	
              SE
                31-9-30 W1M

            	
              112507556

            	
              Shirley
                Terhaar

            	
              25%
                M&M

            	
              March
                20, 2006

            	
              40.0

            
	
              SW
                31-9-30 W1M

            	
              112507545

            	
              Shirley
                Terhaar

            	
              25%
                M&M

            	
              March
                20, 2006

            	
              40.0

            

    

     

    Note:
      The above list is subject to unintentional mistakes and

    >omissions
      and lists certain leases that have not been paid. Leases for

    >acreage
      that has not and may not be paid for will be subject to having

    >the
      mineral rights rescinded.

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    SCHEDULE
      ‘B’ - To the Assignment

    

    Attached
      to and forming part of an Assignment of Lease made effective the 24th day of
      January, 2007 between Mogul Energy Ltd., as Assignor, and Mogul Energy
      International, Inc., as Assignee.

    

    
      	
              Legal
                Description

               

            	
              Parcel
                No.

            	
              Lessor

            	
              Interest

            	
              Lease
                Date

            	
              Net
                Acres

            
	
              NW
                26-9-30 W1M

            	
              114143576

            	
              Dorothy
                Jurgens

            	
              50%
                M&M

            	
              April
                8, 2006

            	
              80.0

            
	
              SW
                26-9-30 W1M

            	
              114143598

            	
              Dorothy
                Jurgens

            	
              50%
                M&M

            	
              April
                8, 2006

            	
              80.0

            
	
              SE
                26-9-30 W1M

            	
              114143587

            	
              Dorothy
                Jurgens

            	
              50%
                M&M

            	
              April
                8, 2006

            	
              80.0

            
	
              SE
                31-9-30 W1M

            	
              112507556

            	
              Phyllis
                Gehring

            	
              25%
                M&M

            	
              March
                20, 2006

            	
              40.0

            
	
              SW
                31-9-30 W1M

            	
              112507545

            	
              Phyllis
                Gehring

            	
              25%
                M&M

            	
              March
                20, 2006

            	
              39.5

            
	
              SE
                31-9-30 W1M

            	
              112507556

            	
              Arlene
                Joyce Mitchell

            	
              25%
                M&M

            	
              March
                16, 2006

            	
              40.0

            
	
              SW
                31-9-30 W1M

            	
              112507545

            	
              Arlene
                Joyce Mitchell

            	
              25%
                M&M

            	
              March
                16, 2006

            	
              39.5

            
	
              NW
                35-9-30 W1M

            	
              112506656

            	
              Patricia
                Mary Greig

            	
              2/3
                M&M

            	
              April
                5, 2006

            	
              106.67

            
	
              NE
                35-9-30 W1M

            	
              112506702

            	
              Patricia
                Mary Greig

            	
              100%
                M&M

            	
              April
                5, 2006

            	
              160.0

            
	
              NW
                35-9-30 W1M

            	
              112506656

            	
              Maxine
                Lois Franchuk

            	
              1/3
                M&M

            	
              April
                11, 2006

            	
              53.34

            
	
              SW
                16-10-30 W1M

            	
              161412162

              161412151

            	
              Gordon
                Kieth Goldsmith and

              Ruth
                Selena Goldsmith

            	
              100%
                M&M

            	
              March
                21, 2006

            	
              143.32

            
	
              NE
                15-10-33 W1M

            	
              112689300

            	
              Clarence
                Alfred Olander Bogner and

              Jean
                Laurine Bogner

            	
              100%
                M&M

            	
              April
                6, 2006

            	
              158.0

            
	
              NW
                15-10-33 W1M

            	
              112689298

            	
              Clarence
                Alfred Olander Bogner and

              Jean
                Laurine Bogner

            	
              100%
                M&M

            	
              April
                6, 2006

            	
              158.6

            
	
              SE
                21-10-33 W1M

            	
              161595850

            	
              Clarence
                Bogner

            	
              100%
                M&M

            	
              April
                6, 2006

            	
              160.0

            
	
              NW
                21-10-33 W1M

            	
              120718144

            	
              Clarence
                Bogner

            	
              50%
                M&M except Coal

            	
              April
                6, 2006

            	
              80.0

            
	
              NE
                28-11-32 W1M

            	
              112612698

            	
              Patricia
                Anne Taylor

            	
              100%
                M&M

            	
              April
                25, 2006

            	
              160.0

            
	
              SW
                22-11-32 W1M

            	
              114236669

            	
              Patricia
                Anne Taylor

            	
              50%
                M&M

            	
              April
                25, 2006

            	
              80.0

            
	
              NW
                22-11-32 W1M

            	
              114236658

            	
              Patricia
                Anne Taylor

            	
              50%
                M&M

            	
              April
                25, 2006

            	
              80.0

            
	
              NE
                23-10-30 W1M

            	
              112597106

            	
              Jeanne-Marie
                McLeod and Keith Donald McLeod

            	
              100%
                M&M

            	
              March
                28, 2006

            	
              160.0

            
	
              SE
                4-10-30 W1M

            	
              112597915

            	
              Charles
                Veysey and Carol Veysey

            	
              100%
                M&M

            	
              May
                6, 2006

            	
              160.0

            
	
              SW
                4-10-30 W1M

            	
              112597791

            	
              Charles
                Veysey and Carol Veysey

            	
              100%
                M&M

            	
              May
                6, 2006

            	
              160.0

            
	
              NE
                30-11-32 W1M

            	
              112612845

            	
              Jacqueline
                Sim

            	
              50%
                M&M

            	
              April
                1, 2006

            	
              80.0

            
	
              NE
                30-11-32 W1M

            	
              112612845

            	
              Wayne
                Nevin

            	
              50%
                M&M

            	
              April
                1, 2006

            	
              80.0

            
	
              NW
                30-11-32 W1M

            	
              112612856

            	
              Jacqueline
                Sim

            	
              50%
                M&M

            	
              April
                1, 2006

            	
              82.21

            

    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

    
      	
              Legal
                Description

               

            	
              Parcel
                No.

            	
              Lessor

            	
              Interest

            	
              Lease
                Date

            	
              Net
                Acres

            
	
              NW
                30-11-32 W1M

            	
              112612856

            	
              Wayne
                Nevin

            	
              50%
                M&M

            	
              April
                1, 2006

            	
              82.21

            
	
              SW
                15-10-33 W1M

            	
              120718122

            	
              Lydia
                Fay Frazer and Wardon Daniel Frazer

            	
              1/6
                M/M except Coal

            	
              May
                30, 2006

            	
              27.0

            
	
              SE
                15-10-33 W1M

            	
              120718111

            	
              Lydia
                Fay Frazer and Wardon Daniel Frazer

            	
              1/6
                M/M except Coal

            	
              May
                30, 2006

            	
              27.0

            
	
              NE
                13-10-30 W1M

            	
              112597443

            	
              Lydia
                Fay Frazer and Wardon Daniel Frazer

            	
              1/9
                M/M

            	
              May
                30, 2006

            	
              18.0

            
	
              SW
                15-10-33 W1M

            	
              120718122

            	
              Lloyd
                Edmond Frazer and Sheila Marie Frazer

            	
              1/6
                M/M except Coal

            	
              May
                31, 2006

            	
              27.0

            
	
              SE
                15-10-33 W1M

            	
              120718111

            	
              Lloyd
                Edmond Frazer and Sheila Marie Frazer

            	
              1/6
                M/M except Coal

            	
              May
                31, 2006

            	
              27.0

            
	
              NE
                13-10-30 W1M

            	
              112597443

            	
              Lloyd
                Edmond Frazer and Sheila Marie Frazer

            	
              1/9
                M/M except Coal

            	
              May
                31, 2006

            	
              18.0

            
	
              NW
                33-10-30 W1M

            	
              112596734

            	
              Barbara
                Jacobson

            	
              25%
                M&M

            	
              June
                13, 2006

            	
              40.0

            
	
              SW
                33-10-30 W1M

            	
              112596723

            	
              Barbara
                Jacobson

            	
              25%
                M&M

            	
              June
                13, 2006

            	
              40.0

            
	
              NW
                33-10-30 W1M

            	
              112596723

            	
              Debra
                Dawn Montgomery

            	
              25%
                M&M

            	
              June
                13, 2006

            	
              40.0

            
	
              SW
                33-10-33 W1M

            	
              112596734

            	
              Debra
                Dawn Montgomery

            	
              25%
                M&M

            	
              June
                13, 2006

            	
              40.0

            
	
              NE
                7-11-32 W1M

            	
              112612991

            	
              Elizabeth
                Louise Witchey

            	
              25%
                M&M

            	
              June
                8, 2006

            	
              40.0

            
	
              NW
                7-11-32 W1M

            	
              112613015

            	
              Elizabeth
                Louise Witchey

            	
              25%
                M&M

            	
              June
                8, 2006

            	
              41.6

            
	
              SE
                7-11-32 W1M

            	
              112613004

            	
              Elizabeth
                Louise Witchey

            	
              25%
                M&M

            	
              June
                8, 2006

            	
              40.0

            
	
              SW
                7-11-32 W1M

            	
              112613026

            	
              Elizabeth
                Louise Witchey

            	
              25%
                M&M

            	
              June
                8, 2006

            	
              41.67

            
	
              SW
                34-11-32 W1M

            	
              114236524

            	
              Michael
                James Murphy, Personal Representative for the estate of Donald
                Henderson

            	
              50%
                M&M except Coal

            	
              June
                28, 2006

            	
              80.5

            
	
              NE
                33-11-32 W1M

            	
              114236535

            	
              Michael
                James Murphy, Personal Representative for the estate of Donald
                Henderson

            	
              50%
                M&M except Coal

            	
              June
                28, 2006

            	
              80.5

            
	
              NW
                33-11-32 W1M

            	
              114236546

            	
              Michael
                James Murphy, Personal Representative for the estate of Donald
                Henderson

            	
              50%
                M&M except Coal

            	
              June
                28, 2006

            	
              80.5

            
	
              SE
                33-11-32 W1M

            	
              114236557

            	
              Michael
                James Murphy, Personal Representative for the estate of Donald
                Henderson

            	
              50%
                M&M except Coal

            	
              June
                28, 2006

            	
              80.5

            
	
              SW
                33-11-32 W1M

            	
              114236568

            	
              Michael
                James Murphy, Personal Representative for the estate of Donald
                Henderson

            	
              50%
                M&M except Coal

            	
              June
                28, 2006

            	
              80.5

            

    

    

    Note:
      The above list is subject to unintentional mistakes and

    >omissions
      and lists certain leases that have not been paid. Leases for

    >acreage
      that has not and may not be paid for will be subject to having

    >the
      mineral rights rescinded.

     

     

    14Exhibit 10.1

    
      

    

    EMPLOYMENT
      AGREEMENT

    

    This
      Employment Agreement (the "Agreement"), entered into as of the 1st day of
      February 2007, by and between RICK'S
      CABARET INTERNATIONAL, INC.,
      a Texas
      corporation (the "Company"), and TRAVIS
      REESE ("Executive").

    

    W
      I T N E S S E T H:

    

    WHEREAS,
      Company desires to employ Executive as provided herein; and 

    

    WHEREAS,
      Executive desires to accept such employment.

    

    NOW,
      THEREFORE, for and in consideration of the mutual covenants and agreements
      contained herein, and for other good and valuable consideration, the receipt
      and
      sufficiency of which are hereby acknowledged, the parties hereto agree as
      follows:

    

    1.    Employment.
      Company
      hereby employs Executive and Executive hereby accepts employment with Company
      upon the terms and conditions hereinafter set forth.

    

    2.    Duties.
      Subject
      to the power of the Board of Directors of Company to elect and remove officers,
      Executive will serve the Company as its Executive
      Vice President, Director of Technology
      and will
      faithfully and diligently perform the services and functions relating to such
      office or otherwise reasonably incident to such office, provided that all such
      services and functions will be reasonable and within Executive's area of
      expertise. Executive will, during the term of this Agreement (or any extension
      thereof), devote his full business time, attention and skills and best efforts
      to the promotion of the business of Company. The foregoing will not be construed
      as preventing Executive from making investments in other businesses or
      enterprises provided that (a) Executive agrees not to become engaged in any
      other business activity that interferes with his ability to discharge his duties
      and responsibilities to Company and (b) Executive does not violate any other
      provision of this Agreement.

    

    3.    Term.
      Subject
      to the terms and conditions hereof, the term of employment of Executive will
      commence as of the date hereof (the "Commencement Date") and will end on that
      date in the year 2010, unless earlier terminated by either party pursuant to
      the
      terms hereof. The term of this Agreement is referred to herein as the
      "Term."

    

    4.    Compensation
      and Benefits During the Employment Term.

    

    
      	 	
              (a)

            	
              Salary.
                Commencing upon the date of this Agreement, Executive will be paid
                an
                annual base salary of $192,500.00, payable bi-weekly (the "Salary").
                At
                any time, and from time to time the Salary may be increased for the
                remaining portion of the term if so determined by the Board of Directors
                of Company after a review of Executive's performance of his duties
                hereunder. 

            

    

    

    
      	 	
              (b)

            	
              Incentive
                Bonus.
                During the Term of this Agreement, Executive will be eligible to
                receive
                an annual incentive bonus commencing for the fiscal year ending September
                30, 2007 (“Incentive Bonus”). The Incentive Bonus shall be calculated
                based on the Company’s Internet division’s net income as of the end of
                each fiscal year as determined by the audited financial statements
                of the
                Company (calculated as $183,500 for the fiscal year ending September
                30,
                2006). For any net income over $200,000 and less than $600,000 during
                any
                such fiscal year, the Executive shall receive an Incentive Bonus
                for that
                fiscal year equal to 10% of the Internet division’s net income over
                $200,000. If the Internet division’s net income exceeds $600,000 in any
                year, the Company’s Compensation Committee agrees to consider potential
                additional compensation.

            

    

    
      
         

      

      
        Employment
          Agreement - Page 1

        
          

        

      

      
         

      

    

    
      	 	
              (c)

            	
              Expenses.
                Upon submission of a detailed statement and reasonable documentation,
                Company will reimburse Executive in the same manner as other executive
                officers for all reasonable and necessary or appropriate out-of-pocket
                travel and other expenses incurred by Executive in rendering services
                required under this Agreement.

            

    

    

    
      	 	
              (d)

            	
              Benefits;
                Insurance.

            

    

    

    
      	 	
              (i)

            	
              Medical,
                Dental and Vision Benefits.
                During this Agreement, Executive and his dependents will be entitled
                to
                receive such group medical, dental and vision benefits as Company
                may
                provide to its other executives, provided such coverage is reasonably
                available, or be reimbursed if Executive is carrying his own similar
                insurance.

            

    

    

    
      	 	
              (ii)

            	
              Benefit
                Plans.
                The Executive will be entitled to participate in any benefit plan
                or
                program of the Company which may currently be in place or implemented
                in
                the future.

            

    

    

    
      	 	
              (iii)

            	
              Other
                Benefits.
                During the Term, Executive will be entitled to receive, in addition
                to and
                not in lieu of base salary, bonus or other compensation, such other
                benefits and normal perquisites as Company currently provides or
                such
                additional benefits as Company may provide for its executive officers
                in
                the future.

            

    

    

    
      	 	
              (d)

            	
              Vacation.
                Executive will be entitled to two weeks paid vacation each year of
                this
                Agreement.

            

    

     

    
      5.    Confidentiality,
        Intellectual Property and Non-Competition.
        

      

        
          	
                	(a)	
                  Confidentiality.
                    In the course of the performance of Executive's duties hereunder,
                    Executive recognizes and acknowledges that Executive may have
                    access to
                    certain confidential and proprietary information of Company or
                    any of its
                    affiliates. Without the prior written consent of Company, Executive
                    shall
                    not disclose any such confidential or proprietary information
                    to any
                    person or firm, corporation, association, or other entity for
                    any reason
                    or purpose whatsoever, and shall not use such information, directly
                    or
                    indirectly, for Executive's own behalf or on behalf of any other
                    party.
                    Executive agrees and affirms that all such information is the
                    sole
                    property of Company and that at the termination and/or expiration
                    of this
                    Agreement, at Company's written request, Executive shall promptly
                    return
                    to Company any and all such information so requested by
                    Company.

                

        

      

    

     

    
      
         

      

      
        Employment
          Agreement - Page 2

        
          

        

      

      
         

      

    

    

    The
      provisions of this Section 5 shall not, however, prohibit Executive from
      disclosing to others or using in any manner information that: 

    

    
      	 	
              (i)

            	
              has
                been published or has become part of the public domain other than
                by acts,
                omissions or fault of Executive;

            

    

    

    
      	 	
              (ii)

            	
              has
                been furnished or made known to Executive by third parties (other
                than
                those acting directly or indirectly for or on behalf of Executive)
                as a
                matter of legal right without restriction on its use or disclosure;
                

            

    

    

    
      	 	
              (iii)

            	
              was
                in the possession of Executive prior to obtaining such information
                from
                Company in connection with the performance of this Agreement;
                or

            

    

    

    
      	 	
              (iv)

            	
              is
                required to be disclosed by law.

            

    

    

    
      	 	
              (b)

            	
              Intellectual
                Property.
                It
                is agreed by the Company and the Executive that all intellectual
                property
                rights and other intangible assets, including, without limitation,
                computer code, tradenames, trademarks, servicemarks, corporate names,
                logos and any existence or possible combination or derivation of
                any and
                all of the same and any code created by Executive during the term
                of this
                Agreement shall remain the sole property of the
                Company.

            

    

    

    
      	 	
              (c)

            	
              Non-Competition.
                Executive agrees that he will not, for himself, on behalf of, or
                in
                conjunction with any person, firm, corporation or entity, either
                as
                principal, employee, shareholder, member, director, partner, consultant,
                owner or part-owner of any corporation, partnership or any other
                type of
                business entity, directly or indirectly, own, manage, operate, control,
                be
                employed by, participate in, or be connected in any manner with the
                ownership, management, operation, or control of (i) any establishment
                which has live female nude or semi-nude entertainment or is in any
                business similar to or competitive with the female entertainment
                business
                presently conducted by the Company anywhere in the United States
                within 50
                miles of any female entertainment business of the Company or any
                female
                entertainment business of the Company under construction, under contract,
                in development or leased by or to the Company, or (ii) any company
                that
                engages in Internet websites for the adult entertainment industry
                or any
                other Internet related activities similar to or competitive with
                those
                presently conducted by the Company for a period of two years (the
                “Non-Compete Period”) from the termination of this Agreement. However, in
                the event of the termination of Executive's employment pursuant to
                Section
                7(d) or 7(e), the Non-Compete Period shall be six months.
                

            

    

    

    Executive
      agrees not to hire, solicit or attempt to solicit for employment by Executive
      or
      any company to which he may be involved, either directly or indirectly, any
      party who is an employee or independent contractor of the Company or any entity
      which is affiliated with the Company, or any person who was an employee or
      independent contractor of the Company or any entity which is affiliated with
      the
      Company within the two year period immediately following the termination of
      this
      Agreement.

    
      
         

      

      
        
          Employment
            Agreement - Page 3

        

        
          

        

      

      
         

      

    

    

    Executive
      acknowledges that he has carefully read and considered all provisions of this
      Agreement and agrees that:

    

    
      	 	
              (i)

            	
              Due
                to the nature of the Company's business, the foregoing covenants
                place no
                greater restraint upon Executive than is reasonably necessary to
                protect
                the business and goodwill of the Company;

            

    

    

    
      	 	
              (ii)

            	
              These
                covenants protect the legitimate interests of the Company and do
                not serve
                solely to limit the Company's future
                competition;

            

    

    

    
      	 	
              (iii)

            	
              This
                Agreement is not an invalid or unreasonable restraint of
                trade;

            

    

    

    
      	 	
              (iv)

            	
              A
                breach of these covenants by Executive would cause irreparable damage
                to
                the Company;

            

    

    

    
      	 	
              (v)

            	
              These
                covenants are reasonable in scope and are reasonably necessary to
                protect
                the Company's business and goodwill which the Company has established
                through its own expense and effort;
                and

            

    

    

    
      	 	
              (vi)

            	
              The
                signing of this Agreement is necessary as part of the consummation
                of the
                transactions described in the preamble.

            

    

    

    6.    Indemnification.
      The
      Corporation shall to the full extent permitted by law or as set forth in the
      Articles of Incorporation and the Bylaws of the Company, indemnify, defend
      and
      hold harmless Executive from and against any and all claims, demands,
      liabilities, damages, loses and expenses (including reasonable attorney's fees,
      court costs and disbursements) arising out of the performance by him of his
      duties hereunder except in the case of his willful misconduct.

    

    7.    Termination.
      This
      Agreement and the employment relationship created hereby will terminate (i)
      upon
      the death or disability of Executive under section 7(a) or 7(b); (ii) with
      cause
      under Section 7(c); (iii) for good reason under Section 7(d); or (iv) or without
      cause under Section 7(e).

     

    
      	 	
              (a)

            	
              Disability.
                The Company shall have the right to terminate the employment of the
                Executive under this Agreement for disability in the event Executive
                suffers an injury, illness, or incapacity of such character as to
                substantially disable him from performing his duties without reasonable
                accommodation by the Company hereunder for a period of more than
                one
                hundred eighty (180) consecutive days upon the Company giving at
                least
                thirty (30) days written notice of
                termination.

            

    

    

    
      	 	
              (b)

            	
              Death.
                This Agreement will terminate on the Death of the
                Executive.

            

    

    
      
         

      

      
        Employment
          Agreement - Page 4

        
          

        

      

      
         

      

    

    
      	 	
              (c)

            	
              With
                Cause.
                The Company may terminate this Agreement at any time because of (i)
                Executive's material breach of any term of the Agreement, (ii) the
                determination by the Board of Directors in the exercise of its reasonable
                judgment that Executive has committed an act or acts constituting
                a felony
                or other crime involving moral turpitude, dishonesty or theft or
                fraud; or
                (iii) Executive's gross negligence in the performance of his duties
                hereunder, provided, in each case, however, that the Company shall
                not
                terminate this Agreement pursuant to this Section 7(c) unless the
                Company
                shall first have delivered to the Executive, a notice which specifically
                identifies such breach or misconduct and the executive shall not
                have
                cured the same within fifteen (15) days after receipt of such
                notice.

            

    

    

    
      	 	
              (d)

            	
              Good
                Reason.
                The Executive may terminate his employment for "Good Reason"
                if:

            

    

    

    
      	 	
              (i)

            	
              he
                is assigned, without his express written consent, any duties materially
                inconsistent with his positions, duties, responsibilities, or status
                with
                the Company as of the date hereof, or a change in his reporting
                responsibilities or titles as in effect as of the date hereof; provided,
                however, that Executive must provide the Company with written notice
                of
                his dispute of such re-assignment of duties or change in his reporting
                responsibilities under this Section 7(d)(i) and give the Company
                opportunity to cure such inconsistency. If such dispute is not resolved
                within thirty (30) days, the Company shall submit such dispute to
                arbitration under Section 14. 

            

    

    

    
      	 	
              (ii)

            	
              his
                compensation is reduced;

            

    

    

    
      	 	
              (iii)

            	
              the
                Company does not pay any material amount of compensation due hereunder
                and
                then fails either to pay such amount within the ten (10) day notice
                period
                required for termination hereunder or to contest in good faith such
                notice. Further, if such contest is not resolved within thirty (30)
                days,
                the Company shall submit such dispute to arbitration under Section
                14.

            

    

    

    
      	 	
              (e)

            	
              Without
                Cause.
                The Company may terminate this Agreement without
                cause.

            

    

    

    
      	 	
              8.

            	
              Obligations
                of Company Upon
                Termination.

            

    

    

    
      	 	
              (a)

            	
              In
                the event of the termination of Executive's employment pursuant to
                Section
                7 (a), (b), or (c), Executive will be entitled only to the compensation
                earned by him hereunder as of the date of such termination (plus
                life
                insurance or disability benefits if applicable and provided for pursuant
                to Section 4(c)).

            

    

    

    
      	 	
              (b)

            	
              In
                the event of the termination of Executive’s employment pursuant to Section
                7 (d) or (e), Executive will be entitled to receive in one lump sum
                payment the full remaining amount under the Term of this Agreement
                to
                which he would have been entitled had this Agreement not been
                terminated.

            

    

    
      
         

      

      
        Employment
          Agreement - Page 5

        
          

        

      

      
         

      

    

    9.    Waiver
      of Breach.
      The
      waiver by any party hereto of a breach of any provision of this Agreement will
      not operate or be construed as a waiver of any subsequent breach by any
      party.

    

    10.  
        Costs.
      If any
      action at law or in equity is necessary to enforce or interpret the terms of
      this Agreement, the prevailing party will be entitled to reasonable attorney's
      fees, costs and necessary disbursements in addition to any other relief to
      which
      he or it may be entitled.

    

    11.  
        Notices.
      Any
      notices, consents, demands, requests, approvals and other communications to
      be
      given under this Agreement by either party to the other will be deemed to have
      been duly given if given in writing and personally delivered or within two
      days
      if sent by mail, registered or certified, postage prepaid with return receipt
      requested, as follows:

    

    
      	 	
              If
                to Company:

            	
              Rick's
                Cabaret International, Inc.

            

    

    10959
      Cutten Road

    Houston,
      Texas 77066

    Attention:
      Eric Langan, President

    

    
      	 	
              If
                to Executive:

            	
              Travis
                Reese

            

    

    ____________________

    ____________________

    

    Notices
      delivered personally will be deemed communicated as of actual
      receipt.

    

    12.  
        Entire
      Agreement.
      This
      Agreement and the agreements contemplated hereby constitute the entire agreement
      of the parties regarding the subject matter hereof, and supersede all prior
      agreements and understanding, both written and oral, among the parties, or
      any
      of them, with respect to the subject matter hereof.

    

    13.  
        Severability.
      If any
      provision of this Agreement is held to be illegal, invalid or unenforceable
      under present or future laws effective during this Agreement, such provision
      will be fully severable and this Agreement will be construed and enforced as
      if
      such illegal, invalid or unenforceable provision never comprised a part hereof;
      and the remaining provisions hereof will remain in full force and effect and
      will not be affected by the illegal, invalid or unenforceable provision or
      by
      its severance herefrom. Furthermore, in lieu of such illegal, invalid or
      unenforceable provision there will be added automatically as part of this
      Agreement a provision as similar in its terms to such illegal, invalid or
      unenforceable provision as may be possible and be legal, valid and
      enforceable.

     

    
      
         

      

      
        Employment
          Agreement - Page 6

        
          

        

      

      
         

      

    

    14.  
        Arbitration.
      If a
      dispute should arise regarding this Agreement the parties agree that all claims,
      disputes, controversies, differences or other matters in question arising out
      of
      this relationship shall be settled finally, completely and conclusively by
      arbitration in Houston, Texas in accordance with the Commercial Arbitration
      Rules of the American Arbitration Association (the "Rules"). The governing
      law
      of this Agreement shall be the substantive law of the State of Texas, without
      giving effect to conflict of laws. A decision of the arbitrator shall be final,
      conclusive and binding on the Company and Executive. Any arbitration held in
      accordance with this paragraph shall be private and confidential and no person
      shall be entitled to attend the hearings except the arbitrator, Executive,
      Executive's attorneys, a representative of the Company, the Company's attorneys,
      and advisors to or witnesses for any party. The matters submitted to
      arbitration, the hearings and proceedings and the arbitration award shall be
      kept and maintained in the strictest confidence by Executive and the Company
      and
      shall not be discussed, disclosed or communicated to any persons except as
      may
      be required for the preparation of expert testimony. On request of any party,
      the record of the proceeding shall be sealed and may not be disclosed except
      insofar, and only insofar, as may be necessary to enforce the award of the
      arbitrator and any judgment enforcing an award. The prevailing party shall
      be
      entitled to recover reasonable and necessary attorneys' fees and costs from
      the
      non-prevailing party and the determination of such fees and costs and the award
      thereof shall be included in the claims to be resolved by the arbitrator
      hereunder.

    

    15.  
        Captions.
      The
      captions in this Agreement are for convenience of reference only and will not
      limit or otherwise affect any of the terms or provisions hereof.

    

    16.  
        Gender
      and Number.
      When the
      context requires, the gender of all words used herein will include the
      masculine, feminine and neuter and the number of all words will include the
      singular and plural.

    

    17.  
        Execution.
      This
      Agreement may be executed in two or more counterparts, all of which when taken
      together shall be considered one and the same agreement and shall become
      effective when counterparts have been signed by each party and delivered to
      the
      other party, it being understood that both parties need not sign the same
      counterpart. In the event that any signature is delivered by facsimile
      transmission or by e-mail delivery of a “.pdf” format data file, such signature
      shall create a valid and binding obligation of the party executing (or on whose
      behalf such signature is executed) with the same force and effect as if such
      facsimile or “.pdf” signature page were an original thereof.

    

    IN
      WITNESS WHEREOF, the parties hereto have duly executed this Agreement effective
      as of the day and year first above written.

    

    
      	 	
              COMPANY:

            
	 	 	 
	 	
              RICK'S
                CABARET INTERNATIONAL, INC.

            
	 	 	 
	 	 	 
	 	
              By:
                

            	
              /s/
                Eric Langan

            	
            
	 	 	
              Eric
                Langan

            
	 	 	
              President
                and Chief Executive Officer

            
	 	 	 
	 	 	 
	 	
              EXECUTIVE:

            
	 	 	 
	 	 	 
	 	
              By:

            	
              /s/
                Travis Reese

            	
            
	 	 	
              Travis
                Reese

            

    

     

     

    Employment
      Agreement - Page 7

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