Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Sun Cal Energy, Inc. - Exhibit 10.7

PURCHASE AND SALE AGREEMENT 

  
    
      
        THIS AGREEMENT dated as of the 25th day
          of July, 2007. 

      

    

  

BETWEEN: 

  
    
      
        DESERT MINING, INC., a Nevada corporation, with
          offices in the City of Longmont, in the State of Colorado (hereinafter
          called "Vendor") 

      

    

  

– and – 

  
    
      
        SUN CAL ENERGY, INC., with offices in Calgary,
          in the Province of Alberta Canada (hereinafter called "Purchaser")
        

      

    

  

            
WHEREAS, Vendor has agreed to sell to Purchaser and Purchaser has agreed to
purchase from Vendor the Assets on and subject to the terms and conditions of
this Agreement. 

      
       NOW THEREFORE THIS AGREEMENT WITNESSES THAT
in consideration of the mutual covenants and agreements set out, the Parties
covenant and agree as follows: 

1.          
DEFINITIONS 

1.1      
   Definitions: In this Agreement, the following terms have the
following respective meanings, unless the context otherwise requires: 

	 	(a) 	
      "Agreement" means this document together with the
      recitals and schedule attached hereto;

	 	 	 
	 	(b) 	
      "Assets" means the Petroleum and Natural Gas Rights and
      the Miscellaneous Interests;

	 	 	 
	 	(c) 	
      "Business Day" means a day other than a Saturday, Sunday
      or any day on which the principal banks located in the State of Colorado
      are not open for business during normal banking hours;

	 	 	 
	 	(d) 	
      "Closing" shall be August 31, 2007 or such other date as
      the parties may agree;

	 	 	 
	 	(e) 	
      "Conveyance Documents" means such assignments, novations,
      transfers, trust agreements and other documents that are reasonably
      required by either Party to complete the transfer and assignment of the
      Assets;

	 	 	 
	 	(f) 	
      "Documents of Title" means collectively any and all
      certificates of title, leases, reservations, permits, licenses,
      assignments, trust declarations, royalty agreements, operating agreements
      or procedures, participation agreements, farmin and farmout agreements,
      sale and purchase agreements, pooling agreements and any other agreements
      reserving or otherwise conferring rights to (i) explore for, drill for,
      produce, take, use or market Petroleum Substances,
(ii)

- 2 - 

	 		
      share in the production of Petroleum Substances, (iii)
      share in the proceeds from, or measured or calculated by reference to the
      value or quantity of, Petroleum Substances which are produced and (iv)
      rights to acquire any of the rights described in items (i) to (iii) of
      this definition; but only if the foregoing pertain in whole or in part to
      Petroleum Substances within, upon or under the Lands, including to those
      which are described in Schedule "A";

	 	 	 	 	 
	 	(g) 	
      "Dollars" or "$" means dollars in the lawful currency of
      the United States of America;

	 	 	 	 	 
	 	(h) 	
      "Lands" means the lands set forth and described in
      Schedule "A";

	 	 	 	 	 
	 	(i) 	
      "Losses" means losses, costs, claims, damages, expenses,
      liabilities, fines and penalties, including legal costs on a solicitor
      client basis;

	 	 	 	 	 
	 	(j) 	
      "Leased Substances" means all Petroleum Substances,
      rights to or in respect of which are granted, reserved or otherwise
      conferred by or under the Documents of Title (but only to the extent that
      the Documents of Title pertain to the Lands);

	 	 	 	 	 
	 	(k) 	
      "Miscellaneous Interests" means the entire right, title,
      estate and interest of Vendor in and to all property, assets and rights,
      to the extent pertaining to Petroleum and Natural Gas Rights (excluding
      therefrom materials and supplies used in connection with operations where
      the costs have not been charged to the joint account of Persons having an
      interest therein and also excluding Petroleum and Natural Gas Rights), but
      including:

	 	 	 	 	 
	 		(i) 	
      all contracts and other agreements to the extent relating
      to Petroleum and Natural Gas Rights or any rights in relation thereto,
      including operating agreements and agreements for the construction,
      ownership and operation of facilities;

	 	 	 	 	 
	 		(ii) 	
      all records, books, documents, licences, reports and
      data, including seismic records, reports and data, and all
      non-interpretive production and engineering information which is not of a
      proprietary nature and which relate directly to the Petroleum and Natural
      Gas Rights, that Vendor either has in its custody or to which Vendor has
      access, but excluding:

	 	 	 	 	 
	 			(A) 	
      tax, legal and financial records;

	 	 	 	 	 
	 			(B) 	
      economic evaluations; and,

	 	 	 	 	 
	 			(C) 	
      engineering, geophysical and geological information, to
      the extent Vendor is contractually prohibited from selling or disclosing
      to other Persons; and

	 	 	 	 	 
	 		(iii) 	
      all subsisting rights to enter upon, use and occupy the
      surface of any lands which are or may be used to gain access to or
      otherwise use the Petroleum and Natural Gas Rights;

	 	 	 	 	 
	 	(l) 	
      "Parties" means all parties to this Agreement, and
      "Party" means any of them;

- 3 - 

	 	(m) 	
      "Permitted Encumbrances" means:

	 	 	 	 
	 		(i) 	
      easements, rights of way, servitudes or other similar
      rights in lands which do not either alone or in the aggregate, materially
      detract from the value of the Assets or materially impair their
  use;

	 	 	 	 
	 		(ii) 	
      the right reserved to or vested in any government or
      other public authority by the terms of any statutory provision, to
      terminate any Documents of Title or to require annual or other periodic
      payments as a condition of the continuance thereof;

	 	 	 	 
	 		(iii) 	
      the right reserved to any governmental authority to levy
      taxes on Leased Substances or the income or revenue therefrom and
      governmental requirements as to production rates on the operations of any
      property;

	 	 	 	 
	 		(iv) 	
      rights reserved to or vested in any municipality or
      governmental, statutory or public authority to control or regulate any of
      the Assets in any manner, and all applicable laws, rules and orders of any
      governmental authority;

	 	 	 	 
	 		(v) 	
      undetermined or inchoate liens created as security in
      favour of the person conducting the operation of any of the Assets for
      Vendor's proportion of the costs and expenses of such
operations;

	 	 	 	 
	 		(vi) 	
      liens for taxes, assessments or governmental charges,
      which are not due or which are not delinquent or the validity of which are
      being contested by Vendor, in good faith;

	 	 	 	 
	 		(vii) 	
      mechanics', builders' or materialmen's liens in respect
      of services rendered or goods supplied for which payment is not at the
      time due;

	 	 	 	 
	 		(viii) 	
      the reservations, limitations, provisos and conditions in
      any original grants from the State of any of the Lands or interests
      therein and statutory exceptions to title;

	 	 	 	 
	 		(ix) 	
      the terms and conditions of the Documents of Title set
      forth in Schedule "A"; and

	 	 	 	 
	 		(x) 	
      such royalty burdens, penalties and other encumbrances as
      are set forth in Schedule "A";

	 	 	 	 
	 	(n) 	
      "Person" means any individual or entity other than Vendor
      or Purchaser including any natural person, firm, corporation, partnership,
      trustee, trust, unincorporated association, union, government or
      government department or government agency and any heir executor,
      administrator or other legal representative of an individual; and pronouns
      used in connection therewith have a similar extended meaning;

	 	 	 	 
	 	(o) 	
      "Petroleum and Natural Gas Rights" means the entire
      right, title and interest of Vendor in and to the Documents of Title and
      the Leased Substances including the interests as set forth in Schedule "A"
      hereto;

- 4 - 

	 	(p) 	
      "Petroleum Substances" means any of crude oil, crude
      bitumen and products derived therefrom, synthetic crude oil, petroleum,
      natural gas (including coalbed methane) natural gas liquids and any and
      all other substances, related to any of the foregoing whether liquid,
      solid or gaseous and whether hydrocarbons or not, including sulphur;
      and

	 	 	 
	 	(q) 	
      "Purchase Price" means the amount set forth in Clause
      3.1.

2.           
INTERPRETATION 

2.1          Derivatives:
When a capitalized derivative of a term defined herein is used, it shall have
the corresponding meaning of the defined term, unless the context otherwise
requires. 

2.2          Knowledge:
The knowledge or awareness of a Party on a matter shall consist of actual
knowledge or awareness of its current officers and its employees who are
primarily responsible for the matter in question in the course of their normal
duties (other than those employees in the field who do not have management
responsibilities), after reasonable inquiry of such Party's applicable files and
records. 

2.3         
Inclusive Language: Where used in this Agreement, "including" and derivative
words and phrases mean "including, without limitation". 

2.4          Schedule(s):
The following Schedule(s) are attached to and made a part of this Agreement:

               
Schedule "A" Documents of Title, Petroleum and Natural Gas Rights, Lands, and
Encumbrances 

2.5         
Conflicts: In the event of any conflicts between the provisions of the body of
this Agreement and the Schedule, the provisions of the body of this Agreement
prevail. In the event of any conflicts between the provisions of this Agreement
and the Documents of Title, the provisions of the Document of Title prevail.

2.6         
Headings and Descriptions: The headings of all Articles, Clauses and Subclauses
are inserted for convenience of reference only and shall not affect the
construction or interpretation of this Agreement, or any provision thereof. Use
of words "Article", "Clause" or "Subclause" in this Agreement refers to an
Article, Clause or Subclause of this Agreement unless a contrary intention is
specifically stated. 

2.7         
Singular/Plural: Whenever the singular or masculine or neuter is used in this
Agreement or in the Schedule, it shall be interpreted as meaning the plural or
feminine or body politic or corporate or vice versa, as the context requires.

3.           
PURCHASE AND SALE 

3.1         
Deposit: At Signing, the Purchaser shall pay to the Vendor the amount of Two
Hundred Fifty Thousand Dollars ($250,000.00), and the Vendor shall immediately
refrain from offering the properties to other possible purchasers. Purchaser
shall have until Closing Date to complete their Due Diligence work. If Purchaser
is unwilling or unable to complete the transaction as herein outlined by the
Closing Date, the Deposit will be forfeited. 

- 5 - 

3.2          Conveyance:
At Closing, the Purchaser shall pay to the Vendor the amount of Five Hundred
Seventy One Thousand Seven Hundred Ninety-Eight Dollars and Forty Five Cents
($571,798.45), and the Vendor shall sell, assign, transfer, convey and set over
to Purchaser, and Purchaser shall purchase from Vendor, all of the right, title,
estate and interest of Vendor (whether absolute or contingent, legal or
beneficial) in and to the Assets, TO HAVE AND TO HOLD the same, together with
all benefit and advantage to be derived therefrom, absolutely, subject to the
terms of this Agreement. 

4.           
CONVEYANCE DOCUMENTS 

4.1          Cost
of Registration: Purchaser shall bear all costs incurred in registering all
Conveyance Documents relating to the Assets and all costs of registering any
further Conveyance Documents Purchaser may reasonably require. Vendor shall bear
all costs of preparing and registering discharges of any and all security
interests registered against Vendor's interest in the Assets. 

4.2          Subordination
of Ancillary Documents: All documents executed by the Parties and delivered
pursuant to the provisions of this Article 4, or otherwise pursuant to this
Agreement, are subordinate to the provisions hereof and the provisions hereof
shall govern and prevail in the event of conflict. 

5.           
REPRESENTATIONS AND WARRANTIES OF VENDOR 

5.1          Representations
and Warranties of Vendor: Vendor hereby represents and warrants to Purchaser,
both as at the date hereof and at Closing, that: 

	 	(a) 	
      Standing: It is a corporation duly organized and validly
      existing under the laws of its jurisdiction of incorporation and in good
      standing under the laws of the jurisdiction in which it is required to be
      registered in order to hold the Assets;

	 	 	 
	 	(b) 	
      Requisite Authority: It has all necessary corporate
      power, authority and capacity to enter into and execute this Agreement, to
      sell the Assets and to perform its other obligations under this
      Agreement;

	 	 	 
	 	(c) 	
      No Conflicts: The execution and delivery of this
      Agreement and the consummation of the transactions contemplated by this
      Agreement will not violate, nor be in conflict with, its charter, bylaws
      or similar constating documents of Vendor, or any provision of any
      agreement or instrument of a material nature to which it is a party or is
      bound, or any decree, order, statute, rule or regulations applicable to
      it;

	 	 	 
	 	(d) 	
      No Prior Approval: No authorization or approval or other
      action by, and no notice to or filing with, any governmental authority or
      regulatory body exercising jurisdiction over the Assets is required for
      the due execution, delivery and performance by Vendor of this Agreement,
      other than authorizations, approvals or exemptions from requirement
      therefor, previously obtained and currently in force;

	 	 	 
	 	(e) 	
      Execution and Enforceability of Documents: It has duly
      executed and delivered this Agreement and all other documents required
      hereunder and this Agreement and such documents constitute legal, valid
      and binding obligations of it

- 6 - 

	 		
      enforceable in accordance with their respective terms,
      subject to the qualification that their enforceability may be limited by
      rules of equity and by insolvency, bankruptcy and other laws of general
      application affecting the enforcement of creditor's rights;

	 	 	 
	 	(f) 	
      Finder's Fees: It has not incurred any obligation or
      liability, contingent or otherwise, for brokers' or finders' fees in
      respect of the Assets for which Purchaser shall have any obligation or
      liability;

	 	 	 
	 	(g) 	
      Lawsuits and Claims: No lawsuits, actions or other
      proceedings before any court, governmental agency or arbitral body has
      been commenced against Vendor or, to the knowledge, information and belief
      of Vendor, has been threatened against Vendor or any other Person, which
      might result in impairment or loss of the interest of Vendor in and to the
      Assets or which might otherwise adversely affect the Assets, and Vendor
      has not received notice from any Person claiming an interest in and to the
      Assets adverse to the interest of Vendor and Vendor has no reason to
      believe that any such claim may be made;

	 	 	 
	 	(h) 	
      Default: It has not received notice of any default under
      any order, writ, injunction or decree of any court or of any commission or
      administrative agency or any of the Documents of Title and is not aware of
      any default that might materially adversely impact upon the value of the
      Assets or subject the Documents of Title to cancellation or
      termination;

	 	 	 
	 	(i) 	
      Encumbrances: Other than permitted Encumbrances, (i)
      Vendor has not alienated or encumbered the Assets or any part or portion
      thereof, (ii) Vendor has not committed and is not aware of there having
      been committed any act or omission whereby the interest of Vendor in and
      to the Assets or any part or portion thereof may be cancelled or
      determined, and (iii) the Assets are now free and clear of all royalty
      burdens, liens, penalties, conversion rights and other claims of Third
      Parties, created by, through or under Vendor or of which Vendor has
      knowledge;

	 	 	 
	 	(j) 	
      Production Contracts: Vendor is not a party to and
      Vendor's interest in and to the Assets is not otherwise bound or affected
      by any (i) production sales contracts pertaining to Leased Substances,
      (ii) gas balancing or similar agreements pertaining to Leased Substances,
      (iii) agreements for the transportation, processing or disposal of Leased
      Substances, (iv) agreements for the contract operation of the Assets or
      any of them, or (v) agreements to provide transportation, processing or
      disposal capacity or service to any Person;

	 	 	 
	 	(k) 	
      Reduction of Interest: The Petroleum and Natural Gas
      Rights are not subject to reduction by virtue of the conversion or other
      alteration of the interest of any Person under existing agreements created
      by, through or under Vendor;

	 	 	 
	 	(l) 	
      Production Penalty: The Assets are not subject to a
      production penalty whereby the production proceeds allocable to Vendor's
      interest are payable to a Person until an amount calculated in respect of
      certain costs and expenses paid by such Person are recovered by such
      Person;

- 7 - 

	 	(m) 	
      Quiet Enjoyment: Subject to the rents, covenants,
      conditions and stipulations in the Documents of Title reserved and
      contained on the lessee's or holder's part thereunder to be paid,
      performed and observed, Purchaser may enter into and upon and hold and
      enjoy the Assets for the residue of their respective term thereof for its
      own use and benefit without any lawful interruption of or by Vendor or any
      other Person claiming by, through or under Vendor except pursuant to or in
      respect of Permitted Encumbrances;

	 	 	 	 
	 	(n) 	
      Payment of Taxes and Royalties: All ad valorem, property,
      royalties, production, severance and similar taxes and assessments based
      on or measured by the ownership of the Assets or the production of Leased
      Substances or the receipt of proceeds therefrom payable by it to the date
      hereof have been properly paid and discharged;

	 	 	 	 
	 	(o) 	
      Environmental Claims: Vendor is not aware of and has not
      received:

	 	 	 	 
	 		(i) 	
      any orders or directives which relate to environmental
      matters and which require any work, repairs, construction or capital
      expenditures with respect to the Assets; or

	 	 	 	 
	 		(ii) 	
      any demand or notice issued with respect to the breach of
      any environmental, health or safety law applicable to the Assets,
      including respecting the use, storage, treatment, transportation or
      disposition of environmental contaminants;

	 	 	 	 
	 		
      nor is Vendor aware of any event or circumstance that
      might give rise to any such order, directive, demand or notice;

	 	 	 	 
	 	(p) 	
      No Operations: There have been no operations by Vendor or
      any other Person on or related to the Assets;

	 	 	 	 
	 	(q) 	
      Outstanding AFEs: There are no authorities for
      expenditure, operations notices or amounts budgeted pursuant to Title
      Documents with respect to the Assets;

	 	 	 	 
	 	(r) 	
      No Tangibles: There are no facilities or other tangible
      depreciable property that are used, or intended for use, in connection
      with production, processing, gathering, storage, treatment, injection or
      other operations respecting the Petroleum and Natural Gas Rights included
      in the Assets;

	 	 	 	 
	 	(s) 	
      No Wells: There are no producing wells located on the
      surface of the Lands which may be used in connection with the Petroleum
      and Natural Gas Rights;

	 	 	 	 
	 	(t) 	
      Areas of Mutual Interest or Exclusion: None of the
      Documents of Title include an area of mutual interest, area of exclusion
      or similar provision that remains in effect;

	 	 	 	 
	 	(u) 	
      Offset Wells: No obligations have accrued pursuant to the
      Documents of Title that may be satisfied by the drilling of a well, the
      payment of compensatory royalty or the surrender of some or all of the
      interests granted, reserved or otherwise conferred pursuant to the
      Documents of Title, other than obligations that have been satisfied (by
      means other than by the payment of compensatory royalties) or have been
      permanently waived; and

- 8 - 

	 	(v) 	
      Preferential Rights: None of the interest of Vendor in
      and to the Assets is subject to any rights of first refusal, preemptive
      right of purchase or similar right whereby any Person, other than Vendor,
      would have the right to acquire or purchase all or a portion of the Assets
      that become operative by virtue of this Agreement or the transaction to be
      effected by it.

5.2          No
Other Vendor Representations or Warranties: Vendor makes no warranty whatsoever
except as and to the extent set forth in Clause 5.1. Without limiting the
generality of the foregoing, Vendor does not make any representation or warranty
with respect to: 

	 	(a) 	
      the quality, quantity or recoverability of the Petroleum
      Substances within or under the Lands or any lands pooled or unitized
      therewith;

	 	 	 
	 	(b) 	
      the value of the Assets or the future revenues applicable
      thereto; or

	 	 	 
	 	(c) 	
      any economic evaluations respecting the
  Assets.

6.           
REPRESENTATIONS AND WARRANTIES OF PURCHASER 

6.1         
Representations and Warranties of Purchaser: Purchaser hereby represents and
warrants to Vendor, both as at the date hereof and at Closing, that: 

	 	(a) 	
      Standing: It is a corporation duly organized and validly
      existing under the laws of its jurisdiction of incorporation and in good
      standing under the laws of the jurisdiction in which it is required to be
      registered in order to hold the Assets;

	 	 	 
	 	(b) 	
      Requisite Authority: It has all necessary authority and
      capacity to enter into and execute this Agreement, to buy the Assets and
      to perform its other obligations under this Agreement;

	 	 	 
	 	(c) 	
      No Conflicts: The execution and delivery of this
      Agreement and the consummation of the transactions contemplated by this
      Agreement will not violate, nor be in conflict with, its charter, bylaws
      or similar constating documents of it, or any provision of any agreement
      or instrument to which it is a party or is bound, or any judgment, decree,
      order, statute, rule or regulation applicable to Purchaser;

	 	 	 
	 	(d) 	
      Execution and Enforceability of Documents: It has duly
      executed and delivered this Agreement and all other documents required
      hereunder. This Agreement does, and such documents will, constitute legal,
      valid and binding obligations of it enforceable in accordance with their
      respective terms, subject to the qualification that their enforceability
      may be limited by rules of equity and by insolvency, bankruptcy and other
      laws of general application affecting the enforcement of creditors'
      rights; and

	 	 	 
	 	(e) 	
      Finder's Fees: It has not incurred any obligation or
      liability, contingent or otherwise, for brokers' or finders' fees in
      respect of this transaction for which Vendor shall have any obligation or
      liability.

6.2          Survival
of Representations and Warranties: The representations and warranties contained
herein shall survive the closing of the transactions contemplated hereby, and
shall 

- 9 - 

remain in full force and effect for the benefit of Purchaser
with respect to Clause 5.1 and for the benefit of Vendor with respect to Clause
6.1, but no claim or action in respect of any breach of such representation or
warranty shall be made unless the Party making such claim or bringing such
action has given notice of such claim (including reasonable particulars of the
misrepresentations or breach) to the other within twelve (12) months following
the date of this Agreement. 

7.          
 INDEMNITIES 

7.1         
Vendor's Indemnity for Breach of Representations and Warranties: Subject to
Clauses 6.2, Vendor shall indemnify Purchaser and its directors, officers,
employees and agents from and against all Losses which any of them may pay,
suffer, sustain or incur as a consequence of a breach of any representation or
warranty of Vendor contained in Clause 5.1, excepting any Losses, if and to the
extent caused by the gross negligence or willful misconduct of Purchaser, its
successors, agents or assigns. The indemnity granted by Vendor in this Clause
7.1 is not a title warranty and does not provide an extension of any
representation or warranty contained in Clause 5.1 or any additional remedy with
regard to Vendor's breach of any representation or warranty. Furthermore, the
indemnity of Vendor to Purchaser granted pursuant to this Clause 7.1 shall only
apply to claims of indemnity made by Purchaser to Vendor by giving written
notice to Vendor within twelve (12) months following the date of this Agreement
and, in no event shall the total of the liabilities and indemnities of Vendor
under this Agreement, including any claims relating to Article 5, in the
aggregate exceed the Purchase Price. 

7.2         
Purchaser's Indemnity for Breach of Representations and Warranties: Subject to
Clause 6.2, Purchaser shall indemnify Vendor and its directors, officers,
employees and agents from and against all Losses which any of them may pay,
suffer, sustain or incur as a consequence of a breach of any representation or
warranty of Purchaser contained in Clause 6.1 of this Agreement, excepting any
Losses, if and to the extent caused by the gross negligence or willful
misconduct of Vendor, its successors, agents or assigns. The indemnity granted
by Purchaser in this Clause 7.2 does not provide an extension of any
representation or warranty contained in Clause 6.1 of this Agreement or any
additional remedy with regard to Purchaser's breach of any representation or
warranty. Furthermore, the indemnity of Purchaser to Vendor granted pursuant to
this Clause 7.2 shall only apply to claims of indemnity made by Vendor to
Purchaser by giving written notice to Purchaser within twelve (12) months
following the date of this Agreement. 

7.3          Purchaser's
Liability and Indemnity to Vendor: Purchaser hereby agrees: 

	 	(a) 	
      to be liable to Vendor, its directors, officers, agents
      and employees, for all Losses which any of them may pay, suffer, sustain
      or incur and, in addition,

	 	 	 
	 	(b) 	
      to indemnify and save harmless Vendor, its directors,
      agents and employees from and against all Losses which may be brought
      against or suffered by any of them,

in relation to the Assets and arising out of or in connection
with operations which arise, on or subsequent to the date of this Agreement,
excepting any Losses if, and to the extent, caused by the gross negligence or
willful misconduct of Vendor or its agents and provided further that Purchaser
shall not be liable to, nor be required to, indemnify Vendor in respect of any
Losses in respect of which Vendor is liable to and has indemnified Purchaser
pursuant to Clause 7.1. 

- 10 - 

7.4          Vendor's
Liability and Indemnity to Purchaser: Vendor hereby agrees: 

	 	(a) 	
      to be liable to Purchaser, its directors, officers,
      agents and employees, for all Losses which any of them may pay, suffer,
      sustain or incur and, in addition,

	 	 	 
	 	(b) 	
      to indemnify and save harmless Purchaser, its directors,
      agents and employees from and against all Losses which may be brought
      against or suffered by any of them,

in relation to the Assets and arising out of or in connection
with operations which arose, prior to the date of this Agreement, excepting any
Losses if, and to the extent, caused by the gross negligence or willful
misconduct of Purchaser or its agents and provided further that Vendor shall not
be liable to, nor be required to, indemnify Purchaser in respect of any Losses
in respect of which Purchaser is liable to and has indemnified Vendor pursuant
to Clause 7.2. 

8.          
 NOTICE 

8.1         
Method of Notice: Any notice, communication or other document (hereinafter
called "notice") required or permitted to be given under this Agreement by one
Party to the other shall be in writing and shall be sufficiently given and
received if: 

	 	(a) 	
      personally served on the Party to whose attention the
      notice is to be addressed pursuant to Clause 8.2, at the time of actual
      delivery or, if delivered by hand to a responsible Person at the address
      of the Party to which such notice is directed, two hours following
      delivery to such Party; provided that if such time of deemed receipt is
      not within the normal business hours of the recipient Party, then such
      notice shall be deemed received at the next commencement of business on a
      day that business is normally conducted by the recipient Party;

	 	 	 
	 	(b) 	
      sent by facsimile transmission and directed to the Party
      to whose attention the notice is to be addressed pursuant to Clause 8.2 at
      that Party's fax number set forth below, and such notice so given shall be
      deemed to have been received by the recipient, if the time of transmission
      is stated, two hours following the time so stated; provided that if such
      time of deemed receipt is not within the normal business hours of the
      recipient Party, then such notice shall be deemed received at the next
      commencement of business on a day that business is normally conducted by
      the recipient Party; or

	 	 	 
	 	(c) 	
      mailed by first class registered post, postage prepaid,
      to the other Party (such notice so served shall be deemed to have been
      received by the recipient Party on the fourth (4th) Business Day following
      the date of mailing thereof); provided that in the event of an actual or
      threatened postal strike or other labor disruption that may affect mail
      service, notices shall not be mailed.

		
      For greater certainty, electronic transmission or email
      shall not be an acceptable method of notice.

	 	 
	8.2 	
      Address for Notice: The address for notice for each of
      the Parties shall be as follows:

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	Vendor: 	Purchaser: 
	  	  
	Desert Mining, Inc. 	Sun Cal Energy, Inc. 
	4328 Highway 66 	Bow Valley Square II 
	Longmont, CO 80504 	700, 205 – 5th Ave SW 
	U.S.A. 	Calgary, AB T2P 2V7 
	  	Canada 
	Fax: (970) 535-6220 	  
	  	Fax: 
	Attention: Randy Anderson 	  
	  	Attention: 

8.3         
Changes of Address for Notice: Any Party may, from time to time, change its
address for notice by giving written notice to the other. 

9.          
 MISCELLANEOUS PROVISIONS 

9.1          Non-merger:
The representations and warranties set forth in Clauses 5.1 and 6.1 and the
indemnities and covenants set forth in Article 7 shall be deemed to apply to all
Conveyance Documents and there shall not be any merger of any representation,
warranty, indemnity or covenant in any Conveyance Documents, notwithstanding any
rule or law, equity or statute to the contrary and all such rules are hereby
waived. 

9.2          Public
Announcements: No Party shall release any information concerning this Agreement
and the transaction herein provided for without the prior written consent of the
other Party, which will not be withheld unreasonably. Nothing contained herein
shall prevent any Party at any time from furnishing information to any
governmental agency or regulatory authority, or to the public if required by
applicable law or securities rules or regulations, or if such Party considers it
to be advisable in the circumstances, provided that the Parties shall advise
each other in advance of any public statement which they propose to make
regarding the said transaction. Nothing herein contained shall prevent Vendor
from furnishing information relating to the said transaction or the identity of
Purchaser in connection with the procurement of the consent of other Persons
where required pursuant to any Documents of Title. 

9.3          Signs
and Notifications: Vendor may remove any signs which indicate Vendor's ownership
or operation of the Assets. It shall be the responsibility of Purchaser, where
necessary, to erect or install any signs that may be required by governmental
agencies indicating Purchaser to be the owner of the Assets and to notify
contractors, governmental agencies and any other Person of Purchaser's interest
in the Assets. 

9.4          Conflicts
and Entire Agreement: The provisions contained in all documents and agreements
collateral hereto shall at all times be read subject to the provisions of this
Agreement and, in the event of conflict between the provisions contained in any
documents or agreements collateral hereto and the provisions of this Agreement,
the provisions of this Agreement shall prevail unless otherwise expressly
provided herein. 

9.5          Waiver:
Any waiver of any term or condition of this Agreement or consent to any
departure from this Agreement by one Party to the other shall be effective only
if in writing and only in the specific instance and for the specific purpose for
which it is given. 

- 12 - 

9.6         
Applicable Law: This Agreement shall be construed and enforced in accordance
with the laws in effect in the State of Wyoming. 

9.7          Entire
Agreement: This Agreement constitutes the entire agreement between the Parties
with respect to the transactions contemplated herein, contains all of the
representations and warranties of the respective Parties and supersedes all
prior agreements, documents, writing and verbal understandings between the
Parties with respect to the sale of the Assets. 

9.8          Amendments:
This Agreement may not be amended or modified in any respect, except by written
instrument executed by the Parties. 

9.9          Time
of the Essence: Time shall be of the essence of this Agreement and of every part
thereof. 

9.10          Further
Assurances: The Parties shall do all things and provide all assurances, as may
be reasonably required to consummate the transactions contemplated by this
Agreement, and each Party shall provide those further documents or instruments
as may be reasonably required by the other Parties to give effect to this
Agreement and to carry out its provisions. 

9.11         
Enurement: This Agreement shall enure to the benefit of and be binding upon the
Parties, and their respective successors and assigns. 

9.12          Counterpart:
This Agreement may be executed in counterpart and when each party has executed a
counterpart, all counterparts taken together shall constitute an entire
Agreement. 

                  IN
WITNESS WHEREOF the parties have duly executed this Agreement as of the
date and year first above written. 

	DESERT MINING, INC. 	SUN CAL ENERGY, INC. 
	 	 
	 	 
	 	 
	 	 
	Per:           
      /s/
      Signed                                                                  
    	Per:             
       G.
      Drazenovic                                                
    
	Name: Randall B. Anderson 	Name: George Drazenovic 
	Title: CEO 	Title: CFO/Director 

SCHEDULE "A" 

This comprises Schedule "A" attached to and forming part of
that certain Purchase and Sale Agreement dated as of the 25th day of
July, 2007 and made between Desert Mining, Inc. as Vendor, and Sun Cal Energy,
Inc., as Purchaser. 

LANDS

	
Title Document 	
Lands 	
Encumbrances 	Vendor's 
Interest
      
	
United States Department 
of the Interior Bureau of 
Land
      Management Oil and 

Gas Lease #WYW159753 
dated August 1, 2004
      and 
issued to Desert Mining, 
Inc. 

United
      States Department 
of the Interior Bureau of 
Land Management Oil
      and 
Gas Lease #WYW158664 
dated August 1, 2004 and 
issued to
      Desert Mining, 
Inc. 

United
      States Department 
of the Interior Bureau of 
Land Management Oil
      and 
Gas Lease #WYW158665 
dated August 1, 2004 and 
issued to
      Desert Mining, 
Inc. 

	
All Township 27N Range 
110 West 

Section 1
      – Lots 1-4; 

S2N2, NESE 
Section 12 W2NE, NW, 
N2S2, SESW,
      S2SE 

All Township 28N Range 

110 West 
Section 6 –
      Lots 1-7; 
S2NE; SENW; E2SW; 
N2SE 
Section 7 Lots 1 – 4;
      
E2W2 

Section 17 N2 
Section 19 Lots 3 & 4; 
E2SW
      
Section 30 Lots 1 – 4; 
E2W2; SE 

All Township 28N Range
      
110 West 

Section 28 SW 
Section 29 S2 

Section 31
      Lots 1 - 4; 
S2NE; E2W2; SE 

All Township 27N Range 	
Lessor Royalty 

Overriding royalty
      

retained by Vendor 

Lessor Royalty
      
Overriding royalty 

retained by Vendor
      

Lessor Royalty
      

Overriding royalty 
retained by Vendor
    

	
12.5% 

5.0%
      

12.5% 

5.0%
      

12.5% 

5.0%
      

	
United States Department 

of the Interior Bureau
      of 
Land Management Oil and 
Gas Lease #WYW159733 
dated February
      1, 2004 
and issued to Desert 
Mining, Inc.
      

United States Department 
of the Interior Bureau of
      
Land Management Oil and 
Gas Lease #WYW159734 
dated February 1,
      2004 
and issued to Desert 
Mining, Inc. 

United
      States Department 

of the Interior Bureau of 
Land Management
      Oil and 
Gas Lease #WYW159737 
dated February 1, 2004 
and issued
      to Desert 
Mining, Inc. 	107 West 
Section 4 Lots 1 – 4;
      

S2N2; S2 
Section 7 E2 

Section 17 SWNE; W2; 
N2SE
      

All Township 27N Range 

107 West 
Section 5 Lots 1 –
      4; 
S2N2; S2 

All Township 27N Range 
107
      West 

Section 8 N2; N2SE; 
SESE 

	
Lessor Royalty 

Overriding royalty
      
retained by Vendor 

Lessor Royalty
      

Overriding royalty 
retained by Vendor
      

Lessor Royalty 

Overriding royalty
      

retained by Vendor 

	12.5% 

5.0%
      

12.5% 

5.0%
      

12.5% 

5.0%Filed by Automated Filing Services Inc. (604) 609-0244 - Southern Star Energy Inc. - Exhibit 10.9

THIS PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT (THE
"SUBSCRIPTION AGREEMENT") RELATES TO AN OFFERING OF SECURITIES IN AN OFFSHORE
TRANSACTION TO PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED HEREIN) PURSUANT TO
REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
"1933 ACT").

NONE OF THE SECURITIES TO WHICH THIS SUBSCRIPTION AGREEMENT
RELATES HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES
LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED OR SOLD, DIRECTLY OR
INDIRECTLY, IN THE UNITED STATES OR TO U.S. PERSONS (AS DEFINED HEREIN) EXCEPT
IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE
STATE SECURITIES LAWS. IN ADDITION, HEDGING TRANSACTIONS INVOLVING THE
SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT. 

PRIVATE PLACEMENT SUBSCRIPTION 
(Non U.S. Subscribers
Only) 

	TO: 	SOUTHERN STAR ENERGY INC. (the
      “Company”) 
	  	307 – 1178 Hamilton Street 
	  	Vancouver, BC V6B 2S2 

Purchase of Convertible Debenture 

1.     
SUBSCRIPTION 

1.1      On the basis
of the representations and warranties and subject to the terms and conditions
set forth herein, the undersigned (the "Subscriber") hereby irrevocably
subscribes for and agrees to purchase a convertible debenture, in the form
attached hereto as Exhibit A (the "Debenture") for an aggregate purchase price
of US$1,300,000 (the "Subscription Proceeds") (the subscription and agreement to
purchase being the "Subscription").

1.2      The
Debenture is convertible, together with accrued interest thereon, into shares of
the Company’s common stock (the "Conversion Shares") as provided for in the
Debenture. The Debenture and the Conversion Shares are collectively referred to
as the "Securities". 

1.3      On the basis
of the representations and warranties and subject to the terms and conditions
set forth herein, the Company hereby irrevocably agrees to sell the Debenture to
the Subscriber. 

1.4      Subject to
the terms hereof, the Subscription will be effective upon its acceptance by the
Company. 

2.     
PAYMENT 

2.1      The
Subscription Proceeds must accompany this Subscription and shall be paid by
certified cheque or bank draft drawn on a Canadian chartered bank, and made
payable and delivered to the Company. Alternatively, the Subscription Proceeds
may be wired to the Company or its lawyers pursuant to wiring instructions that
will be provided to the Subscriber upon request. If the funds are wired to the
Company’s lawyers, those lawyers are authorized to immediately deliver the funds
to the Company. 

2.2      The
Subscriber acknowledges and agrees that this Subscription Agreement, the
Subscription Proceeds and any other documents delivered in connection herewith
will be held on behalf of the Company. In the 

2

event that this Subscription Agreement is not accepted by the
Company for whatever reason, which the Company expressly reserves the right to
do, within 30 days of the delivery of an executed Subscription Agreement by the
Subscriber, this Subscription Agreement, the Subscription Proceeds (without
interest thereon) and any other documents delivered in connection herewith will
be returned to the Subscriber at the address of the Subscriber as set forth in
this Subscription Agreement. 

2.3      Where the
Subscription Proceeds are paid to the Company, the Company is entitled to treat
such Subscription Proceeds as an interest free loan to the Company until such
time as the Subscription is accepted and the certificates representing the
Securities have been issued to the Subscriber. 

3.      DOCUMENTS
REQUIRED FROM SUBSCRIBER 

3.1      The
Subscriber must complete, sign and return to the Company the following
documents: 

	 	(a) 	
      two (2) executed copies of this Subscription Agreement;
      and

	 	 	 
	 	(b) 	
      the Questionnaire attached hereto as Exhibit B (the
      "Questionnaire").

3.2      The
Subscriber shall complete, sign and return to the Company as soon as possible,
on request by the Company, any additional documents, questionnaires, notices and
undertakings as may be required by any regulatory authorities and applicable
law. 

4.     
CLOSING 

4.1      Closing of
the purchase and sale of the Securities shall occur on or before December 1,
2007, or on such other date as may be determined by the Company in its sole
discretion (the "Closing Date").

5.     
ACKNOWLEDGEMENTS OF SUBSCRIBER 

5.1      The
Subscriber acknowledges and agrees that: 

	 	(a) 	
      the Securities have not been registered under the
      Securities Act of 1933, as amended (the "1933 Act"), or under any state
      securities or "blue sky" laws of any state of the United States, and are
      being offered only in a transaction not involving any public offering
      within the meaning of the 1933 Act, and, unless so registered, may not be
      offered or sold in the United States or to U.S. Persons (as defined
      herein), except pursuant to an effective registration statement under the
      1933 Act, or pursuant to an exemption from, or in a transaction not
      subject to, the registration requirements of the 1933 Act, and in each
      case only in accordance with applicable state and provincial securities
      laws;

	 	 	 
	 	(b) 	
      the Company will refuse to register any transfer of the
      Securities not made in accordance with the provisions of Regulation S,
      pursuant to an effective registration statement under the 1933 Act or
      pursuant to an available exemption from, or in a transaction not subject
      to, the registration requirements of the 1933 Act;

	 	 	 
	 	(c) 	
      by completing the Questionnaire, the Subscriber is
      representing and warranting that the Subscriber satisfies one of the
      categories of registration and prospectus exemptions provided in National
      Instrument 45-106 ("NI 45-106") adopted by the British Columbia Securities
      Commission (the "BCSC");

	 	 	 
	 	(d) 	
      the decision to execute this Subscription Agreement and
      purchase the Securities agreed to be purchased hereunder has not been
      based upon any oral or written representation as to fact or otherwise made
      by or on behalf of the Company and such decision is based solely upon a
      review of publicly available information regarding the Company available
      on the website of the United

3

	 		
      States Securities and Exchange Commission (the "SEC")
      available at www.sec.gov (the "Company Information").

	 	 	 	 
	 	(e) 	
      the Subscriber and the Subscriber's advisor(s) have had a
      reasonable opportunity to review the Company Information and to ask
      questions of and receive answers from the Company regarding the Offering,
      and to obtain additional information, to the extent possessed or
      obtainable without unreasonable effort or expense, necessary to verify the
      accuracy of the information contained in the Company Information, or any
      other document provided to the Subscriber;

	 	 	 	 
	 	(f) 	
      the books and records of the Company were available upon
      reasonable notice for inspection, subject to certain confidentiality
      restrictions, by the Subscriber during reasonable business hours at its
      principal place of business and that all documents, records and books
      pertaining to this Offering have been made available for inspection by the
      Subscriber, the Subscriber's attorney and/or advisor(s);

	 	 	 	 
	 	(g) 	
      by execution hereof the Subscriber has waived the need
      for the Company to communicate its acceptance of the purchase of the
      Securities pursuant to this Subscription Agreement;

	 	 	 	 
	 	(h) 	
      the Company is entitled to rely on the representations
      and warranties and the statements and answers of the Subscriber contained
      in this Subscription Agreement and the Questionnaire and the Subscriber
      will hold harmless the Company from any loss or damage it may suffer as a
      result of the Subscriber's failure to correctly complete this Subscription
      Agreement and the Questionnaire;

	 	 	 	 
	 	(i) 	
      the Subscriber will indemnify and hold harmless the
      Company and, where applicable, its respective directors, officers,
      employees, agents, advisors and shareholders from and against any and all
      loss, liability, claim, damage and expense whatsoever (including, but not
      limited to, any and all fees, costs and expenses whatsoever reasonably
      incurred in investigating, preparing or defending against any claim,
      lawsuit, administrative proceeding or investigation whether commenced or
      threatened) arising out of or based upon any acknowledgment,
      representation or warranty of the Subscriber contained herein, the
      Questionnaire or in any other document furnished by the Subscriber to the
      Company in connection herewith, being untrue in any material respect or
      any breach or failure by the Subscriber to comply with any covenant or
      agreement made by the Subscriber to the Company in connection
      therewith;

	 	 	 	 
	 	(j) 	
      the issuance and sale of the Securities to the Subscriber
      will not be completed if it would be unlawful or if, in the discretion of
      the Company acting reasonably, it is not in the best interests of the
      Company;

	 	 	 	 
	 	(k) 	
      the Subscriber has been advised to consult the
      Subscriber’s own legal, tax and other advisors with respect to the merits
      and risks of an investment in the Securities and with respect to the
      applicable resale restrictions, and it is solely responsible (and the
      Company is not in any way responsible) for compliance with:

	 	 	 	 
	 		(i) 	
      any applicable laws of the jurisdiction in which the
      Subscriber is resident in connection with the distribution of the
      Securities hereunder, and

	 	 	 	 
	 		(ii) 	
      applicable resale restrictions;

	 	 	 	 
	 	(l) 	
      the Subscriber has not acquired the Securities as a
      result of, and will not itself engage in, any "directed selling efforts"
      (as defined in Regulation S under the 1933 Act) in the United States in
      respect of any of the Securities which would include any activities
      undertaken for the purpose of, or that could reasonably be expected to
      have the effect of, conditioning the market in the United States for the
      resale of any of the Securities; provided, however, that the Subscriber
      may sell or otherwise dispose of any of the Securities pursuant to
      registration of any of the Securities pursuant

4

	 		
      to the 1933 Act and any applicable state securities laws
      or under an exemption from such registration requirements and as otherwise
      provided herein;

	 	 	 
	 	(m) 	
      the Subscriber is outside the United States when
      receiving and executing this Subscription Agreement and is acquiring the
      Securities as principal for its own account, for investment purposes only,
      and not with a view to, or for, resale, distribution or fractionalization
      thereof, in whole or in part, and no other person has a direct or indirect
      beneficial interest in such Securities;

	 	 	 
	 	(n) 	
      none of the Securities may be offered or sold to a U.S.
      Person or for the account or benefit of a U.S. Person (other than a
      distributor) prior to the end of the expiration of a period of one year
      after the date of original issuance of the Securities;

	 	 	 
	 	(o) 	
      the statutory and regulatory basis for the exemption
      claimed for the offer and sale of the Securities, although in technical
      compliance with Regulation S, would not be available if the offering is
      part of a plan or scheme to evade the registration provisions of the 1933
      Act;

	 	 	 
	 	(p) 	
      the Company has advised the Subscriber that the Company
      is relying on an exemption from the requirements to provide the Subscriber
      with a prospectus and to sell the Securities through a person registered
      to sell securities under the Securities Act (British Columbia) (the
      “BC Act”) and, as a consequence of acquiring the Securities pursuant to
      this exemption, certain protections, rights and remedies provided by the
      BC Act, including statutory rights of rescission or damages, will not be
      available to the Subscriber;

	 	 	 
	 	(q) 	
      the Securities are not listed on any stock exchange or
      automated dealer quotation system and no representation has been made to
      the Subscriber that any of the Securities will become listed on any stock
      exchange or automated dealer quotation system, except that currently
      certain market makers make market in the shares of the Company's common
      stock on the OTC Bulletin Board;

	 	 	 
	 	(r) 	
      neither the SEC nor any other securities commission or
      similar regulatory authority has reviewed or passed on the merits of the
      Securities;

	 	 	 
	 	(s) 	
      no documents in connection with this Offering have been
      reviewed by the SEC or any state securities administrators;

	 	 	 
	 	(t) 	
      there is no government or other insurance covering any of
      the Securities; and

	 	 	 
	 	(u) 	
      this Subscription Agreement is not enforceable by the
      Subscriber unless it has been accepted by the Company, and the Subscriber
      acknowledges and agrees that the Company reserves the right to reject any
      subscription for any reason.

6.     
REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE SUBSCRIBER 

6.1      The
Subscriber hereby represents and warrants to and covenants with the Company
(which representations, warranties and covenants shall survive the Closing Date)
that: 

	 	(a) 	
      the Subscriber is not a U.S. Person (as defined
      herein);

	 	 	 
	 	(b) 	
      the Subscriber is not acquiring the Securities for the
      account or benefit of, directly or indirectly, any U.S. Person (as defined
      herein);

	 	 	 
	 	(c) 	
      the Subscriber is resident in the jurisdiction set out on
      page 11 of this Subscription Agreement;

	 	 	 
	 	(d) 	
      the Subscriber:

5

	 	(i) 	
      is knowledgeable of, or has been independently advised as
      to, the applicable securities laws of the securities regulators having
      application in the jurisdiction in which the Subscriber is resident (the
      “International Jurisdiction”) which would apply to the acquisition of the
      Securities,

	 	 	 	 
	 	(ii) 	
      is purchasing the Securities pursuant to exemptions from
      prospectus or equivalent requirements under applicable securities laws or,
      if such is not applicable, the Subscriber is permitted to purchase the
      Securities under the applicable securities laws of the securities
      regulators in the International Jurisdiction without the need to rely on
      any exemptions,

	 	 	 	 
	 	(iii) 	
      acknowledges that the applicable securities laws of the
      authorities in the International Jurisdiction do not require the Company
      to make any filings or seek any approvals of any kind whatsoever from any
      securities regulator of any kind whatsoever in the International
      Jurisdiction in connection with the issue and sale or resale of the
      Securities, and

	 	 	 	 
	 	(iv) 	
      represents and warrants that the acquisition of the
      Securities by the Subscriber does not trigger:

	 	 	 	 
	 		A. 	
      any obligation to prepare and file a prospectus or
      similar document, or any other report with respect to such purchase in the
      International Jurisdiction, or

	 	 	 	 
	 		B. 	
      any continuous disclosure reporting obligation of the
      Company in the International Jurisdiction, and

the Subscriber will, if requested by
the Company, deliver to the Company a certificate or opinion of local counsel
from the International Jurisdiction which will confirm the matters referred to
in subparagraphs (ii), (iii) and (iv) above to the satisfaction of the Company,
acting reasonably; 

	 	(e) 	
      the Subscriber is acquiring the Securities as principal
      for investment only and not with a view to, or for, resale, distribution
      or fractionalization thereof, in whole or in part, and, in particular, it
      has no intention to distribute either directly or indirectly any of the
      Securities in the United States or to U.S. Persons (as defined
    herein);

	 	 	 
	 	(f) 	
      the Subscriber is outside the United States when
      receiving and executing this Subscription Agreement;

	 	 	 
	 	(g) 	
      the Subscriber understands and agrees not to engage in
      any hedging transactions involving any of the Securities unless such
      transactions are in compliance with the provisions of the 1933 Act and in
      each case only in accordance with applicable state securities
  laws;

	 	 	 
	 	(h) 	
      the Subscriber acknowledges that it has not acquired the
      Securities as a result of, and will not itself engage in, any "directed
      selling efforts" (as defined in Regulation S under the 1933 Act) in the
      United States in respect of any of the Securities which would include any
      activities undertaken for the purpose of, or that could reasonably be
      expected to have the effect of, conditioning the market in the United
      States for the resale of any of the Securities; provided, however, that
      the Subscriber may sell or otherwise dispose of any of the Securities
      pursuant to registration of any of the Securities pursuant to the 1933 Act
      and any applicable state securities laws or under an exemption from such
      registration requirements and as otherwise provided herein;

	 	 	 
	 	(i) 	
      the Subscriber has the legal capacity and competence to
      enter into and execute this Subscription Agreement and to take all actions
      required pursuant hereto and, if the Subscriber is a corporation, it is
      duly incorporated and validly subsisting under the laws of its
      jurisdiction of incorporation and

6

	 		
      all necessary approvals by its directors, shareholders
      and others have been obtained to authorize execution and performance of
      this Subscription Agreement on behalf of the Subscriber;

	 	 	 
	 	(j) 	
      the entering into of this Subscription Agreement and the
      transactions contemplated hereby do not result in the violation of any of
      the terms and provisions of any law applicable to, or, if applicable, the
      constating documents of, the Subscriber, or of any agreement, written or
      oral, to which the Subscriber may be a party or by which the Subscriber is
      or may be bound;

	 	 	 
	 	(k) 	
      the Subscriber has duly executed and delivered this
      Subscription Agreement and it constitutes a valid and binding agreement of
      the Subscriber enforceable against the Subscriber;

	 	 	 
	 	(l) 	
      the Subscriber has received and carefully read this
      Subscription Agreement;

	 	 	 
	 	(m) 	
      the Subscriber (i) has adequate net worth and means of
      providing for its current financial needs and possible personal
      contingencies, (ii) has no need for liquidity in this investment, and
      (iii) is able to bear the economic risks of an investment in the
      Securities for an indefinite period of time, and can afford the complete
      loss of such investment;

	 	 	 
	 	(n) 	
      the Subscriber has the requisite knowledge and experience
      in financial and business matters as to be capable of evaluating the
      merits and risks of the investment in the Securities and the Company, and
      the Subscriber is providing evidence of knowledge and experience in these
      matters through the information requested in the Questionnaire;

	 	 	 
	 	(o) 	
      the Subscriber understands and agrees that the Company
      and others will rely upon the truth and accuracy of the acknowledgements,
      representations, warranties, covenants and agreements contained in this
      Subscription Agreement and the Questionnaire, and agrees that if any of
      such acknowledgements, representations and agreements are no longer
      accurate or have been breached, the Subscriber shall promptly notify the
      Company;

	 	 	 
	 	(p) 	
      the Subscriber is aware that an investment in the Company
      is speculative and involves certain risks, including the possible loss of
      the investment;

	 	 	 
	 	(q) 	
      the Subscriber is purchasing the Securities for its own
      account for investment purposes only and not for the account of any other
      person and not for distribution, assignment or resale to others, and no
      other person has a direct or indirect beneficial interest is such
      Securities, and the Subscriber has not subdivided his interest in the
      Securities with any other person;

	 	 	 
	 	(r) 	
      the Subscriber is not an underwriter of, or dealer in,
      the shares of the Company's common stock, nor is the Subscriber
      participating, pursuant to a contractual agreement or otherwise, in the
      distribution of the Securities;

	 	 	 
	 	(s) 	
      the Subscriber has made an independent examination and
      investigation of an investment in the Securities and the Company and has
      depended on the advice of its legal and financial advisors and agrees that
      the Company will not be responsible in anyway whatsoever for the
      Subscriber's decision to invest in the Securities and the
  Company;

	 	 	 
	 	(t) 	
      if the Subscriber is acquiring the Securities as a
      fiduciary or agent for one or more investor accounts, the Subscriber has
      sole investment discretion with respect to each such account, and the
      Subscriber has full power to make the foregoing acknowledgements,
      representations and agreements on behalf of such account;

	 	 	 
	 	(u) 	
      the Subscriber is not aware of any advertisement of any
      of the Securities and is not acquiring the Securities as a result of any
      form of general solicitation or general advertising including
      advertisements, articles, notices or other communications published in any
      newspaper, magazine

7

	 		
      or similar media or broadcast over radio or television,
      or any seminar or meeting whose attendees have been invited by general
      solicitation or general advertising;

	 	 	 	 
	 	(v) 	
      no person has made to the Subscriber any written or oral
      representations:

	 	 	 	 
	 		(i) 	
      that any person will resell or repurchase any of the
      Securities,

	 	 	 	 
	 		(ii) 	
      that any person will refund the purchase price of any of
      the Securities,

	 	 	 	 
	 		(iii) 	
      as to the future price or value of any of the Securities,
      or

	 	 	 	 
	 		(iv) 	
      that any of the Securities will be listed and posted for
      trading on any stock exchange or automated dealer quotation system or that
      application has been made to list and post any of the Securities of the
      Company on any stock exchange or automated dealer quotation system, except
      that currently certain market makers make market in the shares of the
      Company's common stock on the OTC Bulletin Board; and

	 	 	 	 
	 	(w) 	
      the Subscriber acknowledges and agrees that the Company
      shall not consider the Subscriber's Subscription for acceptance unless the
      undersigned provides to the Company, along with an executed copy of this
      Subscription Agreement:

	 	 	 	 
	 		(i) 	
      a fully completed and executed Questionnaire in the form
      attached hereto as Schedule B, and

	 	 	 	 
	 		(ii) 	
      such other supporting documentation that the Company or
      its legal counsel may request to establish the Subscriber's qualification
      as a qualified investor.

6.2      In this
Subscription Agreement, the term "U.S. Person" shall have the meaning ascribed
thereto in Regulation S promulgated under the 1933 Act and for the purpose of
the Subscription Agreement includes any person in the United States. 

7.     
ACKNOWLEDGEMENT AND WAIVER 

7.1      The
Subscriber has acknowledged that the decision to purchase the Securities was
solely made on the Company Information. The Subscriber hereby waives, to the
fullest extent permitted by law, any rights of withdrawal, rescission or
compensation for damages to which the Subscriber might be entitled in connection
with the distribution of any of the Securities. 

8.     
REPRESENTATIONS AND WARRANTIES WILL BE RELIED UPON BY THE
COMPANY 

8.1      The
Subscriber acknowledges that the acknowledgements, representations and
warranties contained herein and in the Questionnaire are made by it with the
intention that they may be relied upon by the Company and its legal counsel in
determining the Subscriber's eligibility to purchase the Securities under
applicable securities legislation, or (if applicable) the eligibility of others
on whose behalf it is contracting hereunder to purchase the Securities under
applicable securities legislation. The Subscriber further agrees that by
accepting delivery of the certificates representing the Securities, it will be
representing and warranting that the acknowledgements representations and
warranties contained herein and in the Questionnaire are true and correct as of
the date hereof and will continue in full force and effect notwithstanding any
subsequent disposition by the Subscriber of such Securities. 

9.      RESALE
RESTRICTIONS 

9.1      The
Subscriber acknowledges that any resale of the Securities will be subject to
resale restrictions contained in the securities legislation applicable to the
Subscriber or proposed transferee. The Subscriber 

8

acknowledges that the Securities have not been registered under
the 1933 Act or the securities laws of any state of the United States. The
Securities may not be offered or sold in the United States unless registered in
accordance with federal securities laws and all applicable state securities laws
or exemptions from such registration requirements are available. 

10.      BRITISH
COLUMBIA RESALE RESTRICTION 

10.1      The
Subscriber acknowledges that the Securities are subject to resale restrictions
in British Columbia and may not be traded in British Columbia except as
permitted by the BC Act and the rules made thereunder. 

10.2      Pursuant to
Multilateral Instrument 45-102, as adopted by the BCSC, a subsequent trade in
the Securities will be a distribution subject to the prospectus and registration
requirements of applicable Canadian securities legislation (including the BC
Act) unless certain conditions are met, which conditions include a hold period
(the "Canadian Hold Period") that shall have elapsed from the date on which the
Securities were issued to the Subscriber and, during the currency of the
Canadian Hold Period, any certificate representing the Securities is to be
imprinted with a restrictive legend (the "Canadian Legend"). 

10.3      By
executing and delivering this Subscription Agreement, the Subscriber will have
directed the Company not to include the Canadian Legend on any certificates
representing the Securities to be issued to the Subscriber. 

10.4      As a
consequence, the Subscriber will not be able to rely on the resale provisions of
Multilateral Instrument 45-102, and any subsequent trade in any of the
Securities during or after the Canadian Hold Period will be a distribution
subject to the prospectus and registration requirements of Canadian securities
legislation, to the extent that the trade is at that time subject to any such
Canadian securities legislation. 

11.      LEGENDING
AND REGISTRATION OF SUBJECT SECURITIES 

11.1      The
Subscriber hereby acknowledges that upon the issuance thereof, and until such
time as the same is no longer required under the applicable securities laws and
regulations, the certificates representing any of the Securities will bear a
legend in substantially the following form: 

		
      THE SECURITIES REPRESENTED HEREBY HAVE BEEN OFFERED IN AN
      OFFSHORE TRANSACTION TO A PERSON WHO IS NOT A U.S. PERSON (AS DEFINED
      HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF
      1933, AS AMENDED (THE "1933 ACT"). 
	
	 	
       
	 
		
      NONE OF THE SECURITIES REPRESENTED HEREBY HAVE BEEN
      REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND,
      UNLESS SO REGISTERED, MAY NOT BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY,
      IN THE UNITED STATES (AS DEFINED HEREIN) OR TO U.S. PERSONS EXCEPT IN
      ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT,
      PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR
      PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT
      TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN
      ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. IN ADDITION, HEDGING
      TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN
      COMPLIANCE WITH THE 1933 ACT. "UNITED STATES" AND "U.S. PERSON" ARE AS
      DEFINED BY REGULATION S UNDER THE 1933 ACT. 
	

9

11.2      The
Subscriber hereby acknowledges and agrees to the Company making a notation on
its records or giving instructions to the registrar and transfer agent of the
Company in order to implement the restrictions on transfer set forth and
described in this Subscription Agreement. 

12.     
COLLECTION OF PERSONAL INFORMATION 

12.1      The
Subscriber acknowledges and consents to the fact that the Company is collecting
the Subscriber's personal information for the purpose of fulfilling this
Subscription Agreement and completing the Offering. The Subscriber's personal
information (and, if applicable, the personal information of those on whose
behalf the Subscriber is contracting hereunder) may be disclosed by the Company
to (a) stock exchanges or securities regulatory authorities, (b) the Company's
registrar and transfer agent, (c) Canadian tax authorities, (d) authorities
pursuant to the Proceeds of Crime (Money Laundering) and Terrorist Financing
Act (Canada) and (e) any of the other parties involved in the Offering,
including legal counsel, and may be included in record books in connection with
the Offering. By executing this Subscription Agreement, the Subscriber is deemed
to be consenting to the foregoing collection, use and disclosure of the
Subscriber's personal information (and, if applicable, the personal information
of those on whose behalf the Subscriber is contracting hereunder) and to the
retention of such personal information for as long as permitted or required by
law or business practice. Notwithstanding that the Subscriber may be purchasing
Securities as agent on behalf of an undisclosed principal, the Subscriber agrees
to provide, on request, particulars as to the identity of such undisclosed
principal as may be required by the Company in order to comply with the
foregoing. 

13.     
COSTS 

13.1      The
Subscriber acknowledges and agrees that all costs and expenses incurred by the
Subscriber (including any fees and disbursements of any special counsel retained
by the Subscriber) relating to the purchase of the Securities shall be borne by
the Subscriber. 

14.      GOVERNING
LAW 

14.1      This
Subscription Agreement is exclusively governed by the laws of the Province of
British Columbia and the federal laws of Canada applicable thereto. The
Subscriber, in its personal or corporate capacity and, if applicable, on behalf
of each beneficial purchaser for whom it is acting, irrevocably attorns to the
exclusive jurisdiction of the Courts of the Province of British Columbia. 

15.     
SURVIVAL 

15.1      This
Subscription Agreement, including without limitation the representations,
warranties and covenants contained herein, shall survive and continue in full
force and effect and be binding upon the parties hereto notwithstanding the
completion of the purchase of the Securities by the Subscriber pursuant hereto.

16.     
ASSIGNMENT 

16.1      This
Subscription Agreement is not transferable or assignable. 

17.     
SEVERABILITY 

17.1      The
invalidity or unenforceability of any particular provision of this Subscription
Agreement shall not affect or limit the validity or enforceability of the
remaining provisions of this Subscription Agreement. 

18.      ENTIRE
AGREEMENT 

18.1      Except as
expressly provided in this Subscription Agreement and in the agreements,
instruments and other documents contemplated or provided for herein, this
Subscription Agreement contains the entire agreement between the parties with
respect to the sale of the Securities and there are no other terms, conditions,

10

representations or warranties, whether expressed, implied, oral
or written, by statute or common law, by the Company or by anyone else. 

19.     
NOTICES 

19.1      All notices
and other communications hereunder shall be in writing and shall be deemed to
have been duly given if mailed or transmitted by any standard form of
telecommunication. Notices to the Subscriber shall be directed to the address on
page 11 and notices to the Company shall be directed to it at the first page of
this Subscription Agreement. 

20.     
COUNTERPARTS AND ELECTRONIC MEANS 

20.1      This
Subscription Agreement may be executed in any number of counterparts, each of
which, when so executed and delivered, shall constitute an original and all of
which together shall constitute one instrument. Delivery of an executed copy of
this Subscription Agreement by electronic facsimile transmission or other means
of electronic communication capable of producing a printed copy will be deemed
to be execution and delivery of this Subscription Agreement as of the date
hereinafter set forth. 

IN WITNESS WHEREOF the Subscriber has duly executed this
Subscription Agreement as of the date hereinafter set forth. 

DELIVERY AND REGISTRATION INSTRUCTIONS

	1. 	Delivery - please deliver the Share
      certificates to: 
	 	 
	 	 
	 	 
	  	  
	2. 	Registration - registration of the certificates
      which are to be delivered at closing should be made as follows: 
	 	 
	  	(name) 
	 	 
	  	(address) 

11

	3. 	
      The undersigned hereby acknowledges that he or she will
      deliver to the Company all such additional completed forms in respect of
      the Subscriber's purchase of the Securities as may be required for filing
      with the appropriate securities commissions and regulatory
    authorities.

	 	Gobbet Asset Management, Inc. 
	 	(Name of Subscriber – Please type or print)
  
	 	 
	 	/s/
      Signed 
	 	(Signature and, if applicable, Office) 
	 	 
	 	(Address of Subscriber) 
	 	 
	 	(City, State and Zip Code of Subscriber) 
	 	 
	 	(Country of Subscriber)

12

A C C E P T A N C E 

The above-mentioned Subscription Agreement in respect of the
Securities is hereby accepted by SOUTHERN STAR ENERGY INC. 

DATED at Vancouver, the 18th day of September, 2007. 

SOUTHERN STAR ENERGY INC. 

	Per: 	/s/ Eric Boehnke 	 
	  	Authorized Signatory 	 

EXHIBIT A 

FORM OF CONVERTIBLE DEBENTURE 

THE SECURITIES REPRESENTED HEREBY HAVE BEEN OFFERED IN AN OFFSHORE
  TRANSACTION TO A PERSON WHO IS NOT A U.S. PERSON PURSUANT TO REGULATION S UNDER
  THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”).
  NEITHER THE SECURITIES REPRESENTED BY THIS DEBENTURE NOR THE SECURITIES ISSUABLE
  UPON CONVERSION OF THIS DEBENTURE HAVE BEEN REGISTERED UNDER THE SECURITIES
  ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, MAY NOT BE
  OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES (AS DEFINED HEREIN)
  OR TO U.S. PERSONS EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S
  UNDER THE SECURITIES ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
  THE SECURITIES ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION
  NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN EACH
  CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. IN ADDITION,
  HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN
  COMPLIANCE WITH THE SECURITIES ACT. “UNITED STATES” AND “U.S.
  PERSON” ARE AS DEFINED BY REGULATION S UNDER THE SECURITIES ACT. 

	NO. 2 	US$1,300,000 

SOUTHERN STAR ENERGY INC. 

10% CONVERTIBLE DEBENTURE 

	Section 1. 	General. 

     FOR VALUE RECEIVED, Southern Star
  Energy Inc., a Nevada corporation (the “Company”), hereby promises
  to pay to the order of Gobbet Asset Management, Inc., or its registered assigns
  (the “Purchaser”), the principal sum of ONE MILLION THREE HUNDRED
  THOUSAND UNITED STATES DOLLARS (US$1,300,000), or such lesser amount as shall
  then equal the outstanding principal amount hereof, together with interest thereon
  at a rate equal to 10% (the “Interest Rate”) per annum, simple
  interest computed on the basis of the actual number of days elapsed and a year
  of 360 days comprised of twelve 30 day months. Unless earlier converted in accordance
  with Section 4, all unpaid principal, together with any then unpaid and accrued
  interest and other amounts payable hereunder, shall be payable on demand following
  the earlier of (i) September 18, 2009 (the “Maturity Date”)
  or (ii) when such amounts become due and payable as a result of, and following,
  an Event of Default in accordance with Section 2. The Company may repay all
  but not less than all of the principle amount, or principle amount remaining,
  of this Debenture, together with all accrued interest thereon, with thirty (30)
  days written notice received by the Purchaser (the “Repayment Notice”).
  Upon receipt of the Repayment Notice, the Purchaser shall have ten (10) days
  to convert all but not less than all the principle amount, or principle amount
  remaining, of this Debenture, together with all accrued interest thereon, by
  delivering the Conversion Notice (as hereinafter defined), to the Company. Upon
  expiration of ten (10) days following receipt of the Repayment Notice, the Purchaser
  shall lose all right to convert the principle amount, or principle amount remaining,
  of this Debenture, together with all accrued interest thereon. Except as otherwise
  provided herein, all payments required to be made hereunder, if any, shall be
  made in such coin or currency of the United 

1

States as at the time of payment shall be legal tender therein
  for the payment of public and private debts. Interest shall accrue on the unpaid
  balance of the principal amount of this Debenture (without any compounding)
  from and including the date hereof to, but excluding, the date on which the
  principal amount of this Debenture is paid in full (or converted in accordance
  with Section 4 hereof) and shall be payable on the Maturity Date, unless (i)
  the Company repays the principle amount, plus any accrued interest, prior to
  the Maturity Date or (ii) the Purchaser converts the principle amount, plus
  any accrued interest, prior to the Maturity Date. The payment of interest on
  the Maturity Date shall be payable in Shares valued at the Conversion Price
  each as defined in, and in accordance with, Section 4(a) hereof. No fractional
  Shares shall be issued upon payment of interest under this Debenture. Upon payment
  of interest of this Debenture at the Maturity Date or when such interest becomes
  due and payable as a result of, and following, an Event of Default in accordance
  with Section 2 hereof, the Company shall pay to the Purchaser the amount of
  interest that is not paid by the issuance of the Shares in lieu of the Company
  issuing any fractional Shares to the Purchaser. 

	Section 2. 	Defaults. 

     The occurrence of any of the following
  shall constitute an “Event of Default” under this Debenture:

     (a) the Company shall fail to pay
  (i) when due any principal or interest payment hereof on the due date hereunder
  or (ii) any other payment required under the terms of this Debenture on the
  date due;

     (b) the Company shall fail to observe
  or perform any other covenant, obligation, condition or agreement contained
  in this Debenture and such failure shall continue for ten (10) days after written
  notice thereof is delivered to the Company; 

     (c) any representation, warranty,
  certificate, or other statement (financial or otherwise) made or furnished by
  or on behalf of the Company to the Purchaser in writing in connection with this
  Debenture shall be false, incorrect, incomplete or misleading in any material
  respect when made or furnished; 

     (d) the Company shall (i) apply
  for or consent to the appointment of a receiver, trustee, liquidator or custodian
  of itself or of all or a substantial part of its property, (ii) be unable, or
  admit in writing its inability, to pay its debts generally as they mature, (iii)
  make a general assignment for the benefit of its or any of its creditors, (iv)
  be dissolved or liquidated in full or in part, (v) commence a voluntary case
  or other proceeding seeking liquidation, reorganization or other relief with
  respect to itself or its debts under any bankruptcy, insolvency or other similar
  law now or hereafter in effect or consent to any such relief or to the appointment
  of or taking possession of its property by any official in an involuntary case
  or other proceeding commenced against it, or (vi) take any action for the purpose
  of effecting any of the foregoing; or 

     (e) proceedings for the appointment
  of a receiver, trustee, liquidator or custodian of the Company or of all or
  a substantial part of the property thereof, or an involuntary case or other
  proceedings seeking liquidation, reorganization or other relief with respect
  to the Company or the debts thereof under any bankruptcy, insolvency or other
  similar law now or hereafter in effect shall be commenced and an order for relief
  entered or such proceeding shall not be dismissed or discharged within thirty
  (30) days of commencement. 

2

	Section 3. 	Rights Of Purchaser Upon Default. 

     Upon the occurrence or existence
  of any Event of Default and following the expiry of any applicable grace periods
  (other than an Event of Default referred to in Section 2(e) hereof) and at any
  time thereafter during the continuance of such Event of Default, the Purchaser
  may, by written notice to the Company, declare all outstanding amounts payable
  by the Company hereunder to be immediately due and payable without presentment,
  demand, protest or any other notice of any kind, all of which are hereby expressly
  waived, anything contained herein to the contrary notwithstanding. Upon the
  occurrence or existence of any Event of Default described in Section 2(e) hereof,
  immediately and without notice, all outstanding amounts payable by the Company
  hereunder shall automatically become immediately due and payable, without presentment,
  demand, protest or any other notice of any kind, all of which are hereby expressly
  waived, anything contained herein to the contrary notwithstanding. In addition
  to the foregoing remedies, upon the occurrence or existence of any Event of
  Default, the Purchaser may exercise any other right, power or remedy permitted
  to it by law, either by suit in equity or by action at law, or both. 

	Section 4. 	Conversion. 

     (a) Purchaser Conversion.
  At any time, and from time to time, the Purchaser may, at its sole and exclusive
  option by delivering to the Company a conversion notice in the form attached
  hereto as Annex A (the “Conversion Notice”), convert
  all or any part of the principal (plus accrued but unpaid interest thereon)
  outstanding under this Debenture into shares of common stock in the capital
  of the Company (the “Shares”) at a conversion price per Share
  equal to US$0.50 (the “Conversion Price”). Each Share converted
  under this Debenture will be issued as fully paid and non-assessable. The Conversion
  Price shall be subject to adjustment as provided in Section 5 hereof. The Purchaser
  shall convert a minimum of US$10,000 of principal for any conversion pursuant
  to this Section 4(a). 

     (b) Mechanics and Effect of
  Conversion. No fractional Shares shall be issued upon conversion of this
  Debenture. Upon the conversion of the entire principal outstanding under this
  Debenture (and any accrued interest thereon), in lieu of the Company issuing
  any fractional Shares to the Purchaser, the Company shall pay to the Purchaser
  the amount of outstanding principal (and any accrued interest thereon) that
  is not so converted. The Purchaser shall not be required to deliver the original
  Debenture in order to effect a conversion thereunder. Execution and delivery
  of the Conversion Notice shall have the same effect as cancellation of the original
  Debenture and issuance of a new Debenture representing the remaining outstanding
  principal amount. Upon surrender of this Debenture following one or more partial
  conversions, the Company shall promptly deliver to the Purchaser a new Debenture
  representing the remaining outstanding principal amount. At its expense, the
  Company shall, as soon as practicable but in no event more than ten (10) business
  days after conversion of this Debenture pursuant to Section 4, issue and deliver
  to the Purchaser at such principal office a certificate or certificates for
  the number of Shares to which the Purchaser shall be entitled upon such conversion
  (bearing such legends as are required by applicable state and federal securities
  laws in the opinion of counsel to the Company), together with any other securities
  and property to which the Purchaser is entitled upon such conversion under the
  terms of this Debenture. 

     (c) Payment Of Expenses And
  Taxes On Conversion. The Company shall pay all expenses, taxes and other
  charges payable in connection with the preparation, execution, 

3

issuance and delivery of stock certificates and new debentures
  pursuant to this Section 4, except that, in the event such stock certificates
  or new debentures shall be registered in a name or names other than the name
  of the holder of this Debenture, funds sufficient to pay all stock transfer
  fees, which shall be payable upon the execution and delivery of such stock certificate
  or certificates or new debentures, shall be paid by the holder thereof to the
  Company at the time of delivering this Debenture to the Company upon conversion.

	Section 5. 	Conversion Price Adjustments. 

     (a) Adjustment For Stock Splits
  And Combinations. If the Company shall at any time or from time to time
  after the date of original issuance of this Debenture (the “Date of
  Original Issue”) effect a subdivision or reverse stock split of
  the outstanding Common Stock, the Conversion Price in effect immediately before
  a subdivision shall be proportionately decreased, and, conversely, the Conversion
  Price in effect immediately before a reverse stock split shall be proportionately
  increased. Any adjustment under this Section 5(a) shall become effective at
  the close of business on the date the subdivision or reverse stock split becomes
  effective. 

     (b) Adjustment For Common Stock
  Dividends And Distributions. If the Company at any time or from time to
  time after the Date of Original Issue issues, or fixes a record date for the
  determination of holders of common stock entitled to receive, a dividend or
  other distribution payable solely in additional shares of common stock, the
  Conversion Price that is then in effect shall be decreased as of the time of
  such issuance or, in the event such record date is fixed, as of the close of
  business on such record date, by multiplying the Conversion Price by a fraction
  (i) the numerator of which is the total number of shares of common stock issued
  and outstanding immediately prior to the time of such issuance or the close
  of business on such record date, and (ii) the denominator of which is the sum
  of the total number of shares of common stock issued and outstanding immediately
  prior to the time of such issuance or the close of business on such record date
  plus the number of shares of common stock issuable in payment of such dividend
  or distribution; provided, however, that if such record date is fixed and such
  dividend is not fully paid or if such distribution is not fully made on the
  date fixed therefor, the Conversion Price shall be recomputed accordingly as
  of the close of business on such record date and thereafter the Conversion Price
  shall be adjusted pursuant to this Section 5(b) to reflect the actual payment
  of such dividend or distribution. 

     (c) Adjustments For Other Dividends
  And Distributions. If the Company at any time or from time to time after
  the Date of Original Issue issues, or fixes a record date for the determination
  of holders of common stock entitled to receive, a dividend or other distribution
  payable in securities of the Company other than shares of common stock or in
  other property, in each such event provision shall be made so that the Purchaser
  shall receive upon conversion hereof, in addition to the number of shares of
  common stock receivable hereupon, the amount of securities of the Company or
  other property which such Purchaser would have received had this Debenture been
  converted into common stock on the date of such event and had it thereafter,
  during the period from the date of such event to and including the conversion
  date, retained such securities or other property receivable by it as aforesaid
  during such period, subject to all other adjustments called for during such
  period under this Section 5 with respect to the rights of the Purchaser or with
  respect to such other securities or other property by their terms. As used herein,
  the term “other property” does not include cash. 

4

     (d) Adjustment For Reclassification,
  Exchange And Substitution. If at any time or from time to time after the
  Date of Original Issue, the common stock issuable upon the conversion of this
  Debenture is changed into the same or a different number of shares of any class
  or series of stock, whether by recapitalization, reclassification or otherwise
  (other than a subdivision or reverse stock split or stock dividend or a reorganization,
  merger, consolidation or sale of assets provided for elsewhere in this Section
  5), then in any such event the Purchaser shall have the right thereafter to
  convert this Debenture into the kind and amount of stock and other securities
  and property receivable upon such recapitalization, reclassification or other
  change by holders of the number of shares of common stock into which this Debenture
  could have been converted immediately prior to such recapitalization, reclassification
  or change, all subject to further adjustment as provided herein or with respect
  to such other securities or property by the terms thereof. 

     (e) Certificate Of Adjustment.
  In each case of an adjustment or readjustment of the Conversion Price for the
  number of shares of common stock or other securities issuable upon conversion
  of this Debenture, the Company, at its own expense, shall cause its Secretary
  or Treasurer to compute such adjustment or readjustment in accordance with the
  provisions hereof and prepare a certificate showing such adjustment or readjustment,
  and shall mail such certificate, by first class mail, postage prepaid, to the
  Purchaser at the Purchaser’s address as shown in the Company’s books.
  The certificate shall set forth such adjustment or readjustment, showing in
  detail the facts upon which such adjustment or readjustment is based. No adjustment
  in the Conversion Price shall be required to be made unless it would result
  in an increase or decrease of at least one cent, but any adjustments not made
  because of this sentence shall be carried forward and taken into account in
  any subsequent adjustment otherwise required hereunder. 

     (f) Notices Of Record Date.
  Upon (i) the establishment by the Company of a record of the holders of any
  class of securities for the purpose of determining the holders thereof who are
  entitled to receive any dividend or other distribution, or (ii) any capital
  reorganization of the Company, any reclassification or recapitalization of the
  capital stock of the Company, any merger or consolidation of the Company with
  or into any other Company, or any transfer of all or substantially all the assets
  of the Company to any other person or any voluntary or involuntary dissolution,
  liquidation or winding up of the Company, the Company shall mail to the Purchaser
  at least 20 days prior to the record date specified therein a notice specifying
  (A) the date on which any such record is to be taken for the purpose of such
  dividend or distribution and a description of such dividend or distribution,
  (B) the date on which any such reorganization, reclassification, transfer, consolidation,
  merger, dissolution, liquidation or winding up is expected to become effective,
  and (C) the date, if any, that is to be fixed as to when the holders of record
  of common stock (or other securities), shall be entitled to exchange their shares
  of common stock (or other securities), for securities or other property deliverable
  upon such reorganization, reclassification transfer, consolidation, merger,
  dissolution, liquidation or winding up. 

	Section 6. 	Exchange or Replacement of Debentures. 

     (a) The Purchaser may, at its option,
  in person or by duly authorized attorney, surrender this Debenture for exchange,
  at the principal business office of the Company, and receive in exchange therefore,
  a new Debenture in the same principal amount as the unpaid principal amount
  of this Debenture and bearing interest at the same annual rate as this Debenture,

5

each such new Debenture to be dated as of the date of this Debenture
  and to be in such principal amount as remains unpaid and payable to such person
  or persons, or order, as the Purchaser may designate in writing; provided that
  any such transfer of this Debenture complies with all applicable securities
  laws. 

     (b) Upon receipt by the Company
  of evidence satisfactory to it of the loss, theft, destruction, or mutilation
  of this Debenture and (in the case of loss, theft or destruction) of an indemnity
  reasonably satisfactory to it, and upon surrender and cancellation of this Debenture,
  if mutilated, the Company will deliver a new Debenture of like tenor in lieu
  of this Debenture. Any Debenture delivered in accordance with the provisions
  of this Section 6 shall be dated as of the date of this Debenture. 

	Section 7. 	Attorneys’ and Collection Fees. 

     Should the indebtedness evidenced
  by this Debenture or any part hereof be collected at law or in equity or in
  bankruptcy, receivership or other court proceedings, the Company agrees to pay,
  in addition to the principal and interest due and payable hereon, all costs
  of collection, including reasonable attorneys’ fees and expenses, incurred
  by the Purchaser in collecting or enforcing this Debenture. 

	Section 8. 	Waivers. 

     The Company hereby waives presentment,
  demand for payment, notice of dishonor, notice of protest and all other notices
  or demands in connection with the delivery, acceptance, performance or default
  of this Debenture. No delay by the Purchaser in exercising any power or right
  hereunder shall operate as a waiver of any power or right, nor shall any single
  or partial exercise of any power or right preclude other or further exercise
  thereof, or the exercise thereof, or the exercise of any other power or right
  hereunder or otherwise; and no waiver whatsoever or modification of the terms
  hereof shall be valid unless set forth in writing by the Purchaser and then
  only to the extent set forth therein. 

	Section 9. 	Amendments. 

     Subject to the provisions of the
  Subscription Agreement dated September 18, 2007 (the “Subscription Agreement”),
  between the Company and the Purchaser, this Debenture may not be amended without
  the express written consent of both the Company and the Purchaser. 

	Section 10. 	Governing Law. 

     This Debenture shall be deemed
  to be made under and shall be exclusively construed in accordance with the laws
  of the Province of British Columbia without giving effect to the principles
  of conflict of laws thereof. 

	Section 11. 	Successors and Assigns. 

     The rights and obligations of the
  Company and the Purchaser under this Debenture shall be binding upon and benefit
  the successors, assigns, heirs, administrators and transferees of the parties.
  Notwithstanding the foregoing, neither this Debenture nor any of the rights,
  interests or obligations hereunder may be assigned, by operation of law or otherwise,
  in whole or in part, by the Company, without the prior written consent of the
  Purchaser. 

6

	Section 12. 	Transfer to Comply with Securities Laws.
    

     This Debenture may not be assigned,
  sold or in any other manner transferred or disposed of, in whole or in part,
  except in compliance with applicable federal, state and provincial securities
  laws and the terms and conditions hereof. 

	Section 13. 	Notices. 

     All notices, requests, demands
  and other communications to any party hereunder shall be in writing (including
  facsimile or similar writing) and shall be given to such party at its address
  or facsimile number set forth below or such other address or facsimile number
  as such party may hereafter specify by notice to the other parties listed below:

	 	(a) 	If to the Company: 	Southern Star Energy Inc. 
	 	  	  	307-1178 Hamilton Street 
	 	  	  	Vancouver, British Columbia 
	 	  	  	Canada V6B 2S2 
	 	  	  	Attention: Eric Boehnke 
	 	  	  	Telephone: 604-484-2405 
	 	  	  	Facsimile: 604-484-2403 
	 	  	  	  
	 	  	with a copy to: 	Clark Wilson LLP 
	 	  	  	Barristers and Solicitors 
	 	  	  	800-885 West Georgia Street 
	 	  	  	Vancouver, BC, Canada V6C 3H1 
	 	  	  	Attention: Cam McTavish 
	 	  	  	Telephone: 604-687-5700 
	 	  	  	Facsimile: 604-687-6314 
	 	  	  	  
	 	(b) 	If to the Purchaser: At the address set
      out on the signature page 

Each such notice, request or other communication shall be effective
  (i) upon receipt (provided, however, that notices received on a Saturday, Sunday
  or legal holiday recognized in the Province of British Columbia, Canada, or
  after 5:00 p.m. on any other day will be deemed to have been received on the
  next business day), if given by legible facsimile transmission with proof from
  sender of confirmation of receipt, or (ii) if given by any other means, when
  delivered at the address specified in this Section 12. 

	Section 14. 	No Rights of Stockholders. 

     Except as otherwise provided herein,
  this Debenture shall not entitle the Purchaser to any of the rights of a stockholder
  of the Company, including without limitation, the right to vote, to receive
  dividends and other distributions, or to receive any notice of, or to attend,
  meetings of stockholders or any other proceedings of the Company, unless and
  to the extent converted into shares of common stock in accordance with the terms
  hereof. 

	Section 15. 	Entire Agreement. 

     This Debenture represents the entire
  agreement between the parties hereto with respect to the subject matter hereof
  and there are no representations, warranties or commitments, except as 

7

set forth herein. This Debenture may be amended only by an instrument
  in writing executed by the parties hereto.

	Section 16. 	Headings. 

     The headings used in this Debenture
  are used for convenience only and are not to be considered in construing or
  interpreting this Debenture. 

	Section 17. 	Electronic Means 

     Delivery of an executed copy of
  this Debenture by electronic facsimile transmission or other means of electronic
  communication capable of producing a printed copy will be deemed to be execution
  and delivery of this Debenture as of the date hereinafter set forth. 

	Section 18. 	Currency 

     Unless expressly stated otherwise,
  all funds expressed in this Debenture are stated in United States dollars. 

	Section 19. 	Restrictions on Shares 

     The Shares issuable upon conversion
  of this Debenture may not be sold or transferred unless (a) the Shares, first
  shall have been registered under the Securities Act and applicable state securities
  laws, or (b) the Company shall have been furnished with an opinion of legal
  counsel (in form, substance and scope customary for opinions in such circumstances)
  to the effect that such sale or transfer is exempt from registration requirements
  of the Securities Act, or (c) the Shares, are sold under Rule 144 under the
  Securities Act. Except as otherwise provided in the Subscription Agreement,
  each certificate for the Shares issuable upon conversion of this Debenture that
  has not been so registered and that has not been sold under an exemption that
  permits removal of the legend, shall bear a legend substantially in the following
  form, as appropriate: 

“THE SECURITIES REPRESENTED HEREBY
  HAVE BEEN OFFERED IN AN OFFSHORE TRANSACTION TO A PERSON WHO IS NOT A U.S. PERSON
  (AS DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES
  ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). NONE OF THE SECURITIES
  REPRESENTED HEREBY HAVE BEEN REGISTERED UNDER THE SECURITIES ACT, OR ANY U.S.
  STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, MAY NOT BE OFFERED OR SOLD,
  DIRECTLY OR INDIRECTLY, IN THE UNITED STATES (AS DEFINED HEREIN) OR TO U.S.
  PERSONS EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE SECURITIES
  ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT,
  OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT
  TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN EACH CASE ONLY
  IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. IN ADDITION, HEDGING TRANSACTIONS
  INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE
  SECURITIES ACT. “UNITED STATES” AND “U.S. PERSON” ARE AS
  DEFINED BY REGULATION S UNDER THE SECURITIES ACT.” 

8

Upon the request of the Purchaser of a certificate representing
  any Shares issuable upon conversion of this Debenture, the Company shall remove
  the foregoing legend from the certificate and issue to the Purchaser a new certificate
  free of any transfer legend, (a) if without an effective registration statement
  with such request, the Company shall have received either (i) an opinion of
  counsel, in form, substance and scope customary for opinions in such circumstances,
  to the effect that any such legend may be removed from such certificate, or
  (ii) satisfactory representations from the Purchaser that the Purchaser is eligible
  to sell such security under Rule 144 or (b) a registration statement under the
  Securities Act covering the resale of such securities is in effect.

     IN WITNESS WHEREOF, the Company
  has caused this Debenture to be duly executed by its duly authorized officer
  as of the date indicated below. 

Date: September 18, 2007 

	 	SOUTHERN STAR ENERGY INC. 
	 	  	 
	 	  	 
	 	By: 	 
         /s/ Eric Boehnke 
	 	  	Name: Eric Boehnke 
	 	  	Title: President, Secretary and Treasurer 

	Debenture No. 	2 	 
	Amount: 	US$1,300,000 	 
	Purchaser Name: 	Gobbet Asset Management, Inc. 	 
	Address: 	  	 
	 	 	 
	 	 	 
	Telephone: 	  	 
	Facsimile: 	  	 

9

ANNEX A 

NOTICE OF CONVERSION 

(To be executed by the Purchaser in order to Convert the Debenture)
  

	TO: 	SOUTHERN STAR ENERGY INC. 

     The undersigned hereby irrevocably
  elects to convert US$_______________________of the principal amount of the Debenture
  effective as of September 18, 2007 between the Company and Gobbet Asset Management,
  Inc., into shares of common stock in the capital of the Company according to
  the conditions stated therein, as of the conversion date written below. All
  capitalized terms used herein shall have the meanings assigned thereto in the
  Debenture. 

	Conversion Date: 	  	  
	Applicable Conversion Price: 	US$ 	  
	Amount to be converted: 	US$ 	  
	Number of Shares of common 	  	  
	stock to be issued: 	  	  
	Amount of Debenture 	Principal: 	US$ 
	unconverted: 	  	  
	Please issue the Shares of 	  	  
	common stock in the following 	  	  
	name and to the following 	  	  
	address: 	  	  
		  	  
	  	  	  
	Signature of the Holder: 	  	  
	Name: 	  	  
	  	  	  
	Address: 	  	  
	  	  	  
	  	  	  
		  	  
	  	  	  
	Phone Number: 	  	  

A-1 

- 2 - 

EXHIBIT B 

BRITISH COLUMBIA QUESTIONNAIRE 

All capitalized terms herein, unless otherwise defined, have
the meanings ascribed thereto in the Subscription Agreement. 

The purpose of this Questionnaire is to assure the Company that
the Subscriber will meet certain requirements of National Instrument 45-106 ("NI
45-106"). The Company will rely on the information contained in this
Questionnaire for the purposes of such determination. 

The Subscriber covenants, represents and warrants to the
Company that: 

	 	1. 	
      the Subscriber has such knowledge and experience in
      financial and business matters as to be capable of evaluating the merits
      and risks of the transactions detailed in the Subscription Agreement and
      the Subscriber is able to bear the economic risk of loss arising from such
      transactions; 

	 	  	  	  	  
	 	2. 	the Subscriber is (tick one or
      more of the following boxes): 	  
	 	  	  	  	  
	 		(A) 	
      a director, executive officer, employee or control person
      of the Company or an affiliate of the Company 
	[    
]
	 	  	  	
      
	  
	 		(B) 	
      a spouse, parent, grandparent, brother, sister or child
      of a director, executive officer, founder or control person of the Company
      or an affiliate of the Company 
	[    
]
	 	  	  	
      
	  
	 		(C) 	
      a parent, grandparent, brother, sister or child of the
      spouse of a director, executive officer, founder or control person of the
      Company or an affiliate of the Company 
	[    
]
	 	  	  	
      
	  
	 		(D) 	
      a close personal friend of a director, executive officer,
      founder or control person of the Company 
	[    
]
	 	  	  	
      
	  
	 		(E) 	
      a close business associate of a director, executive
      officer, founder or control person of the Company or an affiliate of the
      Company 
	[    
]
	 	  	  	
      
	  
	 	  	 (F) 	
      an accredited investor 
	X 
	 	  	  	
      
	  
	 		(G) 	
      a company, partnership or other entity of which a
      majority of the voting securities are beneficially owned by, or a majority
      of the directors are, persons described in paragraphs A to F 
	[    
]
	 	  	  	
      
	  
	 		(H) 	
      a trust or estate of which all of the beneficiaries or a
      majority of the trustees or executors are persons described in paragraphs
      A to F 
	[    
]
	 	  	  	
      
	  
	 		(I) 	
      purchasing as principal Securities with an aggregate
      acquisition cost of not less than CDN$150,000 
	[    
  ]

- 3 - 

	 	3. 	
      if the Subscriber has checked box B, C, D, E, G or H in
      paragraph 3 above, the director, executive officer, founder or control
      person of the Company with whom the undersigned has the relationship
      is:

	 	 	 	 
	 	 	 	 
	 		
      (Instructions to Subscriber: fill in the name of each
      director, executive officer, founder and control person which you have the
      above-mentioned relationship with. If you have checked box G or H, also
      indicate which of A to F describes the securityholders, directors,
      trustees or beneficiaries which qualify you as box G or H and provide the
      names of those individuals. Please attach a separate page if
      necessary).

	 	 	 	 
	 	4. 	
      if the Subscriber has ticked box F in Section 2 above,
      the Subscriber satisfies one or more of the categories of "accredited
      investor" (as that term is defined in NI 45-106) indicated below (please
      check the appropriate box):

	 	 	 	 
	 		[ ] 	
      (a) a Canadian financial institution as defined in
      National Instrument 14-101, or an authorized foreign bank listed in
      Schedule III of the Bank Act (Canada);

	 	 	 	 
	 		[ ] 	
      (b) the Business Development Bank of Canada incorporated
      under the Business Development Bank Act (Canada);

	 	 	 	 
	 		[ ] 	
      (c) a subsidiary of any person referred to in any of the
      foregoing categories, if the person owns all of the voting securities of
      the subsidiary, except the voting securities required by law to be owned
      by directors of that subsidiary;

	 	 	 	 
	 		[ ] 	
      (d) an individual registered or formerly registered under
      securities legislation in a jurisdiction of Canada, as a representative of
      a person or company registered under securities legislation in a
      jurisdiction of Canada, as an adviser or dealer, other than a limited
      market dealer registered under the Securities Act (Ontario) or the
      Securities Act (Newfoundland);

	 	 	 	 
	 		[ ] 	
      (e) an individual registered or formerly registered under
      the securities legislation of a jurisdiction of Canada as a representative
      of a person referred to in paragraph (d);

	 	 	 	 
	 		[ ] 	
      (f) the government of Canada or a province, or any crown
      corporation or agency of the government of Canada or a province;

	 	 	 	 
	 		[ ] 	
      (g) a municipality, public board or commission in Canada
      and a metropolitan community, school board, the Comite de gestion de la
      taxe scholaire de l'ile de Montreal or an intermunicipal management board
      in Québec;

	 	 	 	 
	 		[ ] 	
      (h) a national, federal, state, provincial, territorial
      or municipal government of or in any foreign jurisdiction, or any agency
      thereof;

	 	 	 	 
	 		[ ] 	
      (i) a pension fund that is regulated by either the Office
      of the Superintendent of Financial Institutions (Canada) or a pension
      commission or similar regulatory authority of a jurisdiction of
    Canada;

	 	 	 	 
	 		[ ] 	
      (j) an individual who either alone or with a spouse
      beneficially owns, directly or indirectly, financial assets (as defined in
      NI 45-106) having an aggregate realizable value that, before taxes but net
      of any related liabilities, exceeds CDN$1,000,000;

	 	 	 	 
	 		[ ] 	
      (k) an individual whose net income before taxes exceeded
      CDN$200,000 in each of the two more recent calendar years or whose net
      income before taxes combined with that of a

- 4 - 

	 		
      spouse exceeded $300,000 in each of those years and who,
      in either case, reasonably expects to exceed that net income level in the
      current calendar year;

	 	 	 	 	 
	 	[ ] 	
      (l) an individual who, either alone or with a spouse, has
      net assets of at least CDN $5,000,000;

	 	 	 	 	 
	 	[X] 	
      

      (m) a person, other than an individual or investment
      fund, that had net assets of at least CDN$5,000,000 as reflected on its
      most recently prepared financial statements;

	 	 	 	 	 
	 	[ ] 	
      (n) an investment fund that distributes it securities
      only to persons that are accredited investors at the time of distribution,
      a person that acquires or acquired a minimum of CDN$150,000 of value in
      securities, or a person that acquires or acquired securities under
      Sections 2.18 or 2.19 of NI 45-106;

	 	 	 
	 	[ ] 	
      (o) an investment fund that distributes or has
      distributed securities under a prospectus in a jurisdiction of Canada for
      which the regulator or, in Québec, the securities regulatory authority,
      has issued a receipt;

	 	 	 
	 	[ ] 	
      (p) a trust company or trust corporation registered or
      authorized to carry on business under the Trust and Loan Companies Act
      (Canada) or under comparable legislation in a jurisdiction of Canada
      or a foreign jurisdiction, acting on behalf of a fully managed account
      managed by the trust company or trust corporation, as the case may
    be;

	 	 	 
	 	[ ] 	
      (q) a person acting on behalf of a fully managed account
      managed by that person, if that person (i) is registered or authorized to
      carry on business as an adviser or the equivalent under the securities
      legislation of a jurisdiction of Canada or a foreign jurisdiction, and
      (ii) in Ontario, is purchasing a security that is not a security of an
      investment fund;

	 	 	 
	 	[ ] 	
      (r) a registered charity under the Income Tax Act
      (Canada) that, in regard to the trade, has obtained advice from an
      eligibility advisor or an advisor registered under the securities
      legislation of the jurisdiction of the registered charity to give advice
      on the securities being traded;

	 	 	 
	 	[ ] 	
      (s) an entity organized in a foreign jurisdiction that is
      analogous to any of the entities referred to in paragraphs (a) to (d) or
      paragraph (i) in form and function;

	 	 	 
	 	[ ] 	
      (t) a person in respect of which all of the owners of
      interests, direct, indirect or beneficial, except the voting securities
      required by law are persons or companies that are accredited
    investors;

	 	 	 
	 	[ ] 	
      (u) an investment funds that is advised by a person
      registered as an advisor or a person that is exempt from registration as
      an advisor; or

	 	 	 
	 	[ ] 	
      (v) a person that is recognized or designated by the
      securities regulatory authority or, except in Ontario and Québec, the
      regulator as (i) an accredited investor, or (ii) an exempt purchaser in
      Alberta or British Columbia after this instrument comes into
  force;

- 5 - 

The Subscriber acknowledges and agrees that the Subscriber may
be required by the Company to provide such additional documentation as may be
reasonably required by the Company and its legal counsel in determining the
Subscriber's eligibility to acquire the Securities under relevant legislation.

       IN WITNESS WHEREOF, the
undersigned has executed this Questionnaire as of the 18th day of September,
2007. 

	If an Individual: 	 	If a Corporation, Partnership or Other Entity:
    
	  	 	  
	  	 	  
	  	 	Gobbet
      Asset Management, Inc. 
	Signature 	 	Print or Type Name of Entity 
	  	 	  
	  	 	  
	  	 	/s/
      Signed 
	Print or Type Name 	 	Signature of Authorized Signatory 
	  	 	  
	  	 	  
	  	 	Corporation 
	  	 	Type of Entity

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