Document:

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and
Stockholders of Beijing Lucky Star Century Advertisement Co., Ltd.

We have audited the accompanying balance sheets of Beijing Lucky Star Century
Advertisement Co., Ltd. as of December 31, 2005 and 2004, and the related
statements and other comprehensive income (loss), shareholders' equity, and cash
flows for each of the years in the two-year period ended December 31, 2005.
These financial statements are the responsibility of the company's management.
Our responsibility is to express an opinion on these financial statements based
on our audits.

We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. The company is not required to
have, nor were we engaged to perform, an audit of its internal control over
financial reporting. Our audit included consideration of internal control over
financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the company's internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Beijing Lucky Star Century
Advertisement Co., Ltd. as of December 31, 2005 and 2004, and the results of its
operations and its cash flows for the years then ended in conformity with
accounting principles generally accepted in the United States of America.

/s/ Moore Stephens Wurth Frazer and Torbet, LLP
-----------------------------------------------
MOORE STEPHENS WURTH FRAZER AND TORBET, LLP

Walnut, California

October 1, 2006

                                       1

<PAGE>

<TABLE>
<CAPTION>
               BEIJING LUCKY STAR CENTURY ADVERTISEMENT CO., LTD.

                                 BALANCE SHEETS
                        AS OF DECEMBER 31, 2005 AND 2004

                                  ASSETS

                                                                                 2005         2004
                                                                              ---------    ---------
<S>                                                                           <C>          <C>
CURRENT ASSETS:
    Cash                                                                      $ 253,694    $  97,633
    Accounts receivable, net of allowance for doubtful accounts of $157,129
      and $114,124 as of December 31, 2005 and 2004, respectively               135,258      119,160
    Other receivables                                                            64,617       70,988
    Other receivables - related parties                                          63,569        8,574
    Other current assets                                                         65,674       39,240
                                                                              ---------    ---------
      Total current assets                                                      582,812      335,595

EQUIPMENT, net                                                                   57,295       19,242
                                                                              ---------    ---------

         Total assets                                                         $ 640,107    $ 354,837
                                                                              =========    =========

        LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
    Accounts payable                                                          $  22,207    $ 280,874
    Customer deposits                                                           298,116      124,836
    Accrued liabilities                                                          19,962       37,203
    Other payables                                                               45,934        4,828
    Other payables - related parties                                             58,528      158,194
    Taxes payable                                                               153,594      (10,039)
                                                                              ---------    ---------
      Total current liabilities                                                 598,341      595,896
                                                                              ---------    ---------

SHAREHOLDERS' EQUITY:
    Paid-in-capital                                                              60,500       60,500
    Retained earnings (deficits)                                                (73,266)    (301,559)
    Statutory reserves                                                           56,363           --
    Accumulated other comprehensive income                                       (1,831)          --
                                                                              ---------    ---------
      Total shareholders' equity                                                 41,766     (241,059)
                                                                              ---------    ---------

         Total liabilities and shareholders' equity                           $ 640,107    $ 354,837
                                                                              =========    =========
</TABLE>

See report of independent registered public accounting firm.
The accompanying notes are an integral part of this statement.

                                       2
<PAGE>

               BEIJING LUCKY STAR CENTURY ADVERTISEMENT CO., LTD.

         STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS)
                 FOR THE YEARS ENDED DECEMBER 31, 2005 AND 2004

                                                         2005          2004
                                                     -----------    -----------
SALES REVENUE                                        $ 1,370,491    $ 1,453,383
LESS: SALES TAX                                          117,526        123,780
                                                     -----------    -----------
REVENUE, NET                                           1,252,965      1,329,603

COST OF SALES                                            518,971      1,247,671
                                                     -----------    -----------

GROSS PROFIT                                             733,994         81,932

SELLING, GENERAL AND  ADMINISTRATIVE EXPENSES            324,290        312,897
                                                     -----------    -----------

INCOME (LOSS) FROM OPERATIONS                            409,704       (230,965)

OTHER INCOME (EXPENSE), NET                                4,269            348
                                                     -----------    -----------

INCOME BEFORE PROVISION FOR INCOME TAXES                 413,973       (230,617)

PROVISION FOR INCOME TAXES                               129,317             --
                                                     -----------    -----------

NET INCOME (LOSS)                                        284,656       (230,617)

OTHER COMPREHENSIVE INCOME:
    Foreign currency translation adjustment               (1,831)            --
                                                     -----------    -----------

COMPREHENSIVE INCOME (LOSS)                          $   282,825    $  (230,617)
                                                     ===========    ===========

See report of independent registered public accounting firm.
The accompanying notes are an integral part of this statement.

                                       3

<PAGE>

<TABLE>
<CAPTION>

               BEIJING LUCKY STAR CENTURY ADVERTISEMENT CO., LTD.

                       STATEMENTS OF SHAREHOLDERS' EQUITY
                 FOR THE YEARS ENDED DECEMBER 31, 2005 AND 2004

                                                                               Accumulated
                                                       Retained                   other
                                          Paid-in      earnings    Statutory  comprehensive
                                          capital     (deficit)    Reserves      income       Totals
                                         ---------    ---------    ---------   ---------    ---------

<S>                                      <C>          <C>          <C>         <C>          <C>
BALANCE, January 1, 2004                 $  60,500    $ (70,942)   $      --   $      --    $ (10,442)

     Net loss                                          (230,617)          --           --    (230,617)

                                         ---------    ---------    ---------   ---------    ---------
BALANCE, December 31, 2004               $  60,500    $(301,559)   $      --   $      --    $(241,059)
     Net income                                         284,656                       --      284,656
     Statutory Reserves                                 (56,363)      56,363          --           --
     Foreign currency translation gain                                            (1,831)      (1,831)
                                         ---------    ---------    ---------   ---------    ---------
BALANCE, December 31, 2005               $  60,500    $ (73,266)   $  56,363   $  (1,831)   $  41,766
                                         =========    =========    =========   =========    =========
</TABLE>

See report of independent registered public accounting firm.
The accompanying notes are an integral part of this statement.

                                       4

<PAGE>

               BEIJING LUCKY STAR CENTURY ADVERTISEMENT CO., LTD.

                            STATEMENTS OF CASH FLOWS
                 FOR THE YEARS ENDED DECEMBER 31, 2005 AND 2004

                                                            2005         2004
                                                         ---------    ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
    Net income (loss)                                    $ 284,656    $(230,617)
    Adjustments to reconcile net income (loss) to cash
     provided by (used in) operating activities:
       Depreciation                                          4,639        3,201
       Allowance for bad debts                              39,600      114,124
     (Increase) decrease in assets:
       Accounts receivable                                 (52,555)     162,660
       Other receivables                                     8,014      (53,323)
       Other receivables - related parties                 (53,996)      (8,574)
       Other current assets                                (25,095)     (39,240)
     Increase (decrease) in liabilities:
       Accounts payable                                   (261,818)      11,501
       Accrued liabilities                                 (17,902)      16,022
       Other payables                                       40,398      (50,818)
       Other payables - related parties                   (102,100)     158,194
       Customer deposits                                   167,742       33,553
       Taxes payable                                       161,530      (28,513)
                                                         ---------    ---------
         Net cash provided by operating activities         193,113       88,170
                                                         ---------    ---------

CASH FLOWS FROM INVESTING ACTIVITIES:
    Additions to equipment                                 (41,508)     (14,066)
                                                         ---------    ---------

EFFECTS OF EXCHANGE RATE CHANGE IN CASH                      4,456           --
                                                         ---------    ---------

INCREASE IN CASH                                           156,061       74,104

CASH, beginning of year                                     97,633       23,529
                                                         ---------    ---------

CASH, end of year                                        $ 253,694    $  97,633
                                                         =========    =========

See report of independent registered public accounting firm.
The accompanying notes are an integral part of this statement.

                                       5

<PAGE>

               BEIJING LUCKY STAR CENTURY ADVERTISEMENT CO., LTD.
                        NOTES TO THE FINANCIAL STATEMENTS

                           December 31, 2005 and 2004

Note 1 - Organization and nature of operations

Background
----------

Beijing Lucky Star Century Advertisement Co., Ltd. ("Lucky Star" or the
"Company") was established on October 20, 2001 in Beijing, the People's Republic
of China ("PRC"). The Company is a Chinese registered limited liability company
with a legal structure similar to a regular corporation and a limited liability
company organized under state laws in the United States of America. The Articles
of Association provides for a 10 year term with original registered capital of
approximately $60,500 (RMB 500,000). The Company principally engages in
advertising business in TV commercials, newspapers, magazines, and outdoor media
in China. The Company was originally established in 1992 as a PRC state owned
enterprise named Lucky Star Advertisement Company. On October 20, 2001, in
accordance with the economic restructuring of China, two individual shareholders
acquired 100% of the Company for a total cash consideration of RMB 500,000.

Note 2 - Summary of significant accounting policies

Basis of Presentation
---------------------

The financial statements represent the activities of the Company. The Company's
financial statements are prepared in conformity with accounting principles
generally accepted in the United States of America.

Foreign currency translation
----------------------------

The reporting currency of the Company is the US dollar. The Company uses their
local currency, Renminbi (RMB), as their functional currency. Results of
operations and cash flows are translated at average exchange rates during the
period, and assets and liabilities are translated at the unified exchange rate
as quoted by the People's Bank of China at the end of the period. Translation
adjustments resulting from this process are included in accumulated other
comprehensive income in the statement of shareholders' equity. Transaction gains
and losses that arise from exchange rate fluctuations on transactions
denominated in a currency other than the functional currency are included in the
results of operations as incurred.

Translation adjustments amounted to ($1,831) and $0 as of December 31, 2005 and
2004, respectively. The balance sheet amounts with the exception of equity at
December 31, 2005 were translated at 8.06 RMB to $1.00 USD as compared to 8.26
RMB at December 31, 2004. The equity accounts were stated at their historical
rate. The average translation rates applied to income statement accounts for the
years ended December 31, 2005 and 2004 were 8.18 RMB and 8.26 RMB, respectively.

See report of independent registered public accounting firm

                                       6

<PAGE>

               BEIJING LUCKY STAR CENTURY ADVERTISEMENT CO., LTD.
                        NOTES TO THE FINANCIAL STATEMENTS

                           December 31, 2005 and 2004

Note 2 - Summary of significant accounting policies, (continued)

Cash and Concentration of Risk
------------------------------

Cash includes cash on hand and demand deposits in accounts maintained with
state-owned banks within the People's Republic of China. Total cash in these
banks at December 31, 2005 and 2004, amounted to $253,694 and $97,633,
respectively, of which no deposits are covered by insurance. The Company has not
experienced any losses in such accounts and believes it is not exposed to any
significant risks on its cash in bank accounts.

Accounts Receivable and Allowance for Doubtful Accounts
-------------------------------------------------------

The Company presents accounts receivable, net of allowance for doubtful
accounts. The allowance is calculated based on review of the accounts receivable
aging report.

Use of Estimates
----------------

The preparation of financial statements in conformity with US GAAP requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements, and the reported amounts of revenue and
expenses during the reporting period. Actual results, when ultimately realized
could differ from those estimates.

Revenue Recognition
-------------------

Revenue from the sales or licensing of proprietary content, third party
programming, imported TV and films, and sales and distribution of advertisement
programs are recognized upon meeting all recognition requirements of Statement
of Position (SOP) 00-2 "Accounting by Producers or Distributors of Films".

Revenue from sales of advertisement designs and products are recognized when the
products are delivered and title has passed.

Cash payments received are recorded as deferred revenue until all the conditions
of revenue recognition have been met.

Recently issued accounting pronouncements
-----------------------------------------

In March 2005, the FASB published FASB Interpretation No. 47, "Accounting for
Conditional Asset Retirement Obligations," which clarifies that the term,
conditional asset retirement obligations, as used in SFAS No. 143, "Accounting
for Asset Retirement Obligations," refers to a legal obligation to perform an
asset retirement activity in which the timing and (or) method of settlement are
conditional on a future event that may or may not be within the control of the
entity. The uncertainty about the timing and (or) method of settlement of a
conditional asset retirement obligation should be factored into the measurement
of the liability when sufficient information exists. The interpretation

See report of independent registered public accounting firm

                                       7
<PAGE>

               BEIJING LUCKY STAR CENTURY ADVERTISEMENT CO., LTD.
                        NOTES TO THE FINANCIAL STATEMENTS

                           December 31, 2005 and 2004

Note 2 - Summary of significant accounting policies, (continued)

Recently issued accounting pronouncements, (continued)
------------------------------------------------------

also clarifies when an entity would have sufficient information to reasonably
estimate the fair value of an asset retirement obligation. This interpretation
is effective no later than the end of the Company's fiscal 2006. The adoption of
this Interpretation is not expected to have a material effect on the Company's
financial position or results of operations.

In June 2005, the FASB issued SFAS No. 154, "Accounting Changes and Error
Corrections" ("SFAS No. 154"). SFAS No. 154 replaces APB No. 20 ("APB 20") and
SFAS No. 3, "Reporting Accounting Changes in Interim Financial Statements," and
applies to all voluntary changes in accounting principle, and changes the
requirements for accounting for and reporting of a change in accounting
principle. APB 20 previously required that most voluntary changes in accounting
principle be recognized by including in net income of the period of change a
cumulative effect of changing to the new accounting principle whereas SFAS No.
154 requires retrospective application to prior periods' financial statements of
a voluntary change in accounting principle, unless it is impracticable. SFAS No.
154 enhances the consistency of financial information between periods. SFAS No.
154 will be effective beginning with the Company's first quarter of fiscal year
2006. The Company does not expect that the adoption of SFAS No. 154 will have a
material impact on its results of operations, financial position or cash flows.

In July 2005, the Financial Accounting Standards Board (FASB) issued an Exposure
Draft of a proposed Interpretation "Accounting for Uncertain Tax Positions--an
interpretation of FASB Statement No. 109." Under the proposed Interpretation, a
company would recognize in its financial statements its best estimate of the
benefit of a tax position, only if the tax position is considered probable of
being sustained on audit based solely on the technical merits of the tax
position. In evaluating whether the probable recognition threshold has been met,
the proposed Interpretation would require the presumption that the tax position
will be evaluated during an audit by taxing authorities.

The proposed Interpretation would be effective as of the end of the first fiscal
year ending after December 15, 2005, with a cumulative effect of a change in
accounting principle to be recorded upon the initial adoption. The proposed
Interpretation would apply to all tax positions and only benefits from tax
positions that meet the probable recognition threshold at or after the effective
date would be recognized. The Company is currently analyzing the proposed
Interpretation and has not determined its potential impact on its financial
statements.

The Company cannot predict with certainty the rules in the final Interpretation,
there is risk that the final Interpretation could result in a cumulative effect
charge to earnings upon adoption, increases in future effective tax rates,
and/or increases in future interperiod effective tax rate volatility.

See report of independent registered public accounting firm

                                       8
<PAGE>

               BEIJING LUCKY STAR CENTURY ADVERTISEMENT CO., LTD.
                        NOTES TO THE FINANCIAL STATEMENTS

                           December 31, 2005 and 2004

Note 2 - Summary of significant accounting policies, (continued)

Recently issued accounting pronouncements, (continued)
------------------------------------------------------

In October 2005, FASB Staff Position (FSB) FAS 13-1, "Accounting for Rental
Costs Incurred during a Construction Period" was issued. This FSP concluded that
rental costs associated with ground or building operating leases that are
incurred during a construction period be expensed. The guidance in the FSP is
required to be applied to the first reporting period beginning after December
15, 2005. The adoption of this pronouncement is not expected to have a material
impact on the Company's financial position or results of operations.

In February 2006, the FASB issued SFAS No. 155, "Accounting for Certain Hybrid
Financial Instruments" ("FAS 155"), which amends SFAS No. 133, "Accounting for
Derivative Instruments and Hedging Activities" ("FAS 133") and SFAS No. 140,
"Accounting for Transfers and Servicing of Financial Assets and Extinguishments
of Liabilities" ("FAS 140"). FAS 155 provides guidance to simplify the
accounting for certain hybrid instruments by permitting fair value remeasurement
for any hybrid financial instrument that contains an embedded derivative, as
well as, clarifies that beneficial interests in securitized financial assets are
subject to FAS 133. In addition, FAS 155 eliminates a restriction on the passive
derivative instruments that a qualifying special-purpose entity may hold under
FAS 140. FAS 155 is effective for all financial instruments acquired, issued or
subject to a new basis occurring after the beginning of an entity's first fiscal
year that begins after September 15, 2006.

In March 2006, the FASB issued SFAS No. 156, "Accounting for Servicing of
Financial Assets" ("FAS 156"), which amends SFAS No. 140. FAS 156 specifically
provides guidance addressing the recognition and measurement of separately
recognized servicing assets and liabilities, common with mortgage securitization
activities, and provides an approach to simplify efforts to obtain hedge
accounting treatment. FAS 156 is effective for all separately recognized
servicing assets and liabilities acquired or issued after the beginning of an
entity's fiscal year that begins after September 15, 2006, with early adoption
being permitted.

In July 2006, the FASB issued FASB Interpretation No. 48, "Accounting for
Uncertainty in Income Taxes - an Interpretation of FASB Statement No. 109" ("FIN
48"). FIN 48 clarifies the accounting for uncertainty in income taxes recognized
in a company's financial statements in accordance with FAS 109, "Accounting for
Income Taxes". FIN 48 prescribes a recognition threshold and measurement
attribute for the financial statement recognition and measurement of a tax
position taken or expected to be taken in a tax return. FIN 48 also provides
guidance on derecognition, classification, interest and penalties, accounting in
interim periods, disclosure and transition. The requirements of FIN 48 are
effective for our fiscal year beginning January 1, 2007.

The implementation of the above pronouncements is not expected to have a
material effect on the Company's financial statement presentation or
disclosures.

See report of independent registered public accounting firm

                                       9
<PAGE>

               BEIJING LUCKY STAR CENTURY ADVERTISEMENT CO., LTD.
                        NOTES TO THE FINANCIAL STATEMENTS

                           December 31, 2005 and 2004

Note 2 - Summary of significant accounting policies, (continued)

Concentration of Credit Risk
----------------------------

Financial instruments which subject the Company to concentrations of credit risk
consist principally of accounts receivable. Exposure to losses on receivables is
dependent on each customer's financial condition. The Company controls its
exposure to credit risk through a process of credit approvals, credit limits and
monitoring procedures, establishing allowances for anticipated losses.

Fair Value of Financial Instruments
-----------------------------------

Statement of Financial Accounting Standards No. 107 ("SFAS 107"), "Disclosures
About Fair Value of Financial Instruments" requires disclosure of the fair value
of financial instruments held by the Company. SFAS 107 defines the fair value of
financial instruments as the amount at which the instrument could be exchanged
in a current transaction between willing parties.

The carrying amount of accounts receivable, accounts payable, and other items
included on the accompanying balance sheets approximate their fair value due to
their short-term nature.

Income Taxes
------------

The Company has adopted Statement of Financial Accounting Standards No. 109,
"Accounting for Income Taxes" (SFAS 109). SFAS 109 requires the recognition of
deferred income tax liabilities and assets for the expected future tax
consequences of temporary differences between income tax basis and financial
reporting basis of assets and liabilities. Provision for income taxes consist of
taxes currently due plus deferred taxes. There are no deferred taxes at December
31, 2005 and 2004.

The charge for taxation is based on the results for the year as adjusted for
items, which are non-assessable or disallowed. It is calculated using tax rates
that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is accounted for using the balance sheet liability method in
respect of temporary differences arising from differences between the carrying
amount of assets and liabilities in the financial statements and the
corresponding tax basis used in the computation of assessable tax profit. In
principle, deferred tax liabilities are recognized for all taxable temporary
differences, and deferred tax assets are recognized to the extent that it is
probably that taxable profit will be available against which deductible
temporary differences can be utilized.

Deferred tax is calculated at the tax rates that are expected to apply to the
period when the asset is realized or the liability is settles. Deferred tax is
charges or credited in the income statement, except when it related to items
credited or charged directly to equity, in which case the deferred tax is also
dealt with in equity.

See report of independent registered public accounting firm

                                       10

<PAGE>

               BEIJING LUCKY STAR CENTURY ADVERTISEMENT CO., LTD.
                        NOTES TO THE FINANCIAL STATEMENTS

                           December 31, 2005 and 2004

Note 2 - Summary of significant accounting policies, (continued)

Income Taxes, (continued)
-------------------------

Deferred tax assets and liabilities are offset when they related to income taxes
levied by the same taxation authority and the Company intends to settle its
current tax assets and liabilities on a net basis.

Equipment
---------

Equipment is carried at cost less accumulated depreciation. The costs of repairs
and maintenance are expensed as incurred; major replacements and improvements
are capitalized.

When assets are retired or disposed of, the cost and accumulated depreciation
are removed from the accounts, and any resulting gains or losses are included in
the income statement in the year of disposition.

Depreciation is calculated on a straight-line basis over the estimated useful
life of the assets. Estimated useful lives of the assets are as follows:

                                                        Estimated
                                                        Useful life
                                                        -----------
Machinery and equipment                                 5 years
Office equipment                                        5 years

Valuation of Long-Lived assets
------------------------------

The Company annually analyzes its long-lived assets for potential impairment,
assessing the appropriateness of lives and recoverability of unamortized
balances through measurement of undiscounted operating cash flows on a basis
consistent with US GAAP. The Company also re-evaluates the periods of
amortization to determine whether subsequent events and circumstances warrant
revised estimates of useful lives. As of December 31, 2005, the Company expects
these assets to be fully recoverable.

Earnings (Loss) Per Share
-------------------------

The Company was incorporated in PRC and required to register capital. The
registered capital was denominated in monetary amounts. Units of ownership are
not represented by common stocks or any other similar instruments. As a result,
no earnings per share were calculated for the years ended December 31, 2005 and
2004.

See report of independent registered public accounting firm

                                       11
<PAGE>

               BEIJING LUCKY STAR CENTURY ADVERTISEMENT CO., LTD.
                        NOTES TO THE FINANCIAL STATEMENTS

                           December 31, 2005 and 2004

Note 3 - Supplemental disclosure of cash flow information

No payments for interest expense were made during the years ended December 31,
2005 and 2004, respectively. Income tax payments amounted to $20,887 and $6,248
for the years ended December 31, 2005 and 2004, respectively.

Note 4 - Accounts receivable

Accounts receivable consist of the following at December 31:

                                                    2005           2004
                                                ----------      ----------
Accounts receivable                             $  292,387      $  233,284
Less: allowance for doubtful accounts              157,129         114,124
                                                ----------      ----------
Total:                                          $  135,258      $  119,160
                                                ==========      ==========

Note 5- Related party transactions

Other receivables - related parties
-----------------------------------

Other receivables from related parties represents amount due from Mr. Wenquan
Yang, CEO of Lucky Star and Beijing Media, and other related companies for
temporary cash flow needs. As of December 31, 2005 and 2004, total receivables
due from related parties were $63,569 and $8,574, respectively.

Other payables - related parties
--------------------------------

Other payables to related parties represents amount due to Beijing Media and
other related companies for temporary cash flow needs. As of December 31, 2005
and 2004, total payables due to related parties were $58,528 and $158,194,
respectively.

Lease of office
---------------

On March 9, 2005, the Company signed an operating lease agreement with Mr.
Wenquan Yang, CEO of Lucky Star and Beijing Media, for the lease of the office
space in Beijing. According to the agreement, the lease payment is approximately
$52,080 per year. The agreement is renewable annually.

Note 6- Equipment

Equipment consists of the following at December 31:

                                                    2005           2004
                                                ----------      ----------
Machinery and equipment                         $   66,074      $   23,382
Less: accumulated depreciation                       8,779           4,140
                                                ----------      ----------
      Equipment, net                            $   57,295      $   19,242
                                                ==========      ==========

Depreciation expense for the years ended December 31, 2005 and 2004 was $4,639
and $3,201, respectively.

See report of independent registered public accounting firm

                                       12
<PAGE>

               BEIJING LUCKY STAR CENTURY ADVERTISEMENT CO., LTD.
                        NOTES TO THE FINANCIAL STATEMENTS

                           December 31, 2005 and 2004

Note 7- Income taxes

The Company is governed by the Income Tax Law of the People's Republic of China
(PRC) and various local income tax laws (the Income Tax Laws). Under the local
Income Tax laws, the Company generally is subject to income tax at an effective
rate of 33% (30% state income taxes plus 3% local income taxes) on income as
reported in their statutory financial statements after appropriate tax
adjustments.

The Company is also subject to business taxes of 8.0% of its total gross sales.
The Company's business taxes are accounted-for-as a reduction of revenues.

The provision for income taxes for the year ended December 31 consisted of the
following:

                                                    2005           2004
                                                ----------      ----------
Provision for US income tax                     $       --      $       --
Provision for China income tax                     116,386              --
Provision for China local tax                       12,931              --
                                                ----------      ----------
      Total provision for income taxes          $  129,317      $       --
                                                ==========      ==========

The following table reconciles the U.S. statutory rates to the Company's
effective tax rate:

                                                    2005           2004
                                                ----------      ----------
U.S. Statutory rate                                  34.00%           34.00%
Foreign income not recognized in USA                (34.00)          (34.00)
China income taxes                                   33.00             0.00
                                                ----------      ----------
Effective income tax rate                            33.00%            0.00%
                                                ==========      ==========

Note 8- Subsequent event

On July 9, 2006, the Company entered into a definitive agreement with the
shareholders of Navstar Media Holdings, Inc. ("Navstar") in which Navstar was to
acquire operational control of Lucky Star. Operational control allows Navstar to
exercise full authority over the operations, governance and employees of Lucky
Star. Pursuant to the Agreement, Navstar agreed to issue up to 2,800,000 shares
of its common stock to existing shareholders of Lucky Star and to invest an
unspecified amount of funds into the operations of Lucky Star. Upon completion
of the share issuance and investment, Navstar will have acquired a 70% ownership
interest in Lucky Star.

See report of independent registered public accounting firm

                                       13
<PAGE>Exhibit 10.1

                           PURCHASE AND SALE AGREEMENT

                                 by and between

                                 CEDAR RIDGE LLC

                                     Seller

                                       and

                            NEW FRONTIER ENERGY, INC.

                                      Buyer

                                                                    CONFIDENTIAL
<PAGE>

                           PURCHASE AND SALE AGREEMENT

This PURCHASE and SALE AGREEMENT ( the "Agreement") is made this 1st day of
November , 2006, to be effective as of 7:00 am Mountain Standard Time on the 1st
day of November, 2006 (the "Effective Date") by and between CEDAR RIDGE LLC, a
limited liability company formed under the laws of the State of Colorado,
located at 484 Turner Drive Building B, Suite 3, Durango Colorado 81303 (the
"Seller"), and NEW FRONTIER ENERGY, INC., a corporation formed under the laws of
the State of Colorado located at 1789 W. Littleton Boulevard Littleton, Colorado
80120 ( the "Buyer"). The Buyer and Seller may be collectively referred to
herein as the "Parties" and individually as a "Party."

                                    RECITALS

         A. WHEREAS, Seller owns certain oil and gas properties described herein
and desires to sell such properties; and

         B. WHEREAS, Buyer desires to purchase such properties.

         NOW, THEREFORE, in consideration of their mutual promises contained
herein, Buyer and Seller agree to the purchase and sale of the oil and gas
properties described below, in accordance with the following terms and
conditions:

                                    AGREEMENT

         1. Purchase and Sale.

                  (a) Property Being Sold. Subject to the terms and conditions
         of this Agreement, Seller agrees to sell and convey and Buyer agrees to
         purchase and accept the Subject Property for the Purchase Price as
         defined hereinafter. Except as set forth in Section 1(b) below, the
         term "Subject Property" or, where the context so requires, "Subject
         Properties," shall mean:

                           (i) Leaseholds. All of Seller's right, title and
                  interest in and to all oil and gas leaseholds, oil, gas and
                  other minerals, including working interests, carried working
                  interests, rights of assignment and reassignment, net revenue
                  interests, record title interests, undeveloped locations and
                  all other interests under or in oil, gas or mineral leases,
                  and interests in rights to explore for and produce oil, gas or
                  other minerals which are described in Exhibit "A" (the
                  "Leases");

                           (ii) Rights in Production. All of Seller's right,
                  title and interest in and to all reversionary interests,
                  backin interests, overriding royalty interests, production
                  payments, net profits interests, mineral and royalty interests
                  in production of oil, gas or other minerals relating to the
                  Leases;

                           (iii) Wells. All of Seller's right, title and
                  interest in and to (including fixtures and improvements)
                  producing, non-producing and shut-in oil and gas wells and
                  saltwater disposal or injection wells located on the Leases
                  that are described on Exhibit "B" (hereinafter "Wells");

                                       1
<PAGE>
                           (iv) Contract Rights. All of Seller's right, title
                  and interest in or derived from unit agreements, orders and
                  decisions of regulatory authorities establishing or relating
                  to units, unit operating agreements, operating agreements, gas
                  purchase agreements, pooling agreements, Division Orders, oil
                  purchase agreements, gathering agreements, transportation
                  agreements, processing or treating agreements, farmout
                  agreements and farmin agreements and any other agreements
                  described in Exhibit "C", which relate to any of the Leases or
                  Wells described in Exhibits "A" or "B" (hereinafter the
                  "Contracts"), to the extent such contracts are assignable, any
                  non-assignable contracts are specifically described under a
                  separate heading in Exhibit "C";

                           (v) Easements. All of Seller's right, title and
                  interest in and to all rights-of-way, easements, licenses,
                  surface leases, and servitudes appurtenant to or used in
                  connection with the property described in Exhibits "A" or "B"
                  (hereinafter "Easements");

                           (vi) Permits. All of Seller's right, title and
                  interest in and to all permits and licenses of any nature
                  owned, held or operated in connection with operations for the
                  exploration and production of oil, gas or other minerals to
                  the extent the same are used or obtained in connection with
                  any of the Leases, Contracts, Easements or Wells, as such
                  permits and licenses are described on Exhibit "B" (hereinafter
                  "Permits");

                           (vii) Equipment. All of Seller's right, title and
                  interest in and to all personal property, improvements,
                  surface equipment, down-hole equipment and pipelines,
                  buildings and inventory used or obtained in connection with
                  the Leases, Easements, Wells or Permits that are described on
                  Exhibit E; and

                           (viii) Remaining Interests. All other rights and
                  interests in, to or under or derived from the Subject
                  Property, even though the same may be improperly described in
                  or omitted from the Exhibits. It is the express intent of the
                  parties that all of Seller's right, title and interest in any
                  and all oil and gas properties described on Exhibits "A", "B"
                  or "C" be assigned to Buyer hereunder.

                  (b) Property Not Being Sold. The term "Subject Property" or,
         as the context requires, "Subject Properties," shall not include any of
         the following:

                           (i) Receivables. All trade credits, accounts
                  receivable, notes receivables and other receivables
                  attributable to Seller's interests in the Subject Properties
                  with respect to any period prior to the Effective Date;

                           (ii) Claims and Causes of Action. All claims and
                  causes of action of Seller arising from breaches, acts,
                  omissions or events or damage to or destruction of property
                  occurring prior to the Effective Date;

                           (iii) Geophysical Data. All of Seller's seismic,
                  geophysical, geophysical, geological, geochemical and other
                  geotechnical information and data not specifically transferred
                  or licensed to Buyer; and

                           (iv) Electronic Data. All of Seller's electronic
                  mapping data and digital images of documents.

                                       2
<PAGE>
(v) Liabilities. Except for the Assumed Liabilities below, Buyer is not
purchasing, accepting or being transferred any liabilities of Seller.

         2. Purchase Price. Buyer agrees to pay to Seller for the Subject
Property the following consideration: (i) Eight Million Dollars (US)
($8,000,000.00), (the "Cash"), and (ii) to assume responsibility subsequent to
the Effective Date for (a) one-half (1/2) of Seller's obligations and
liabilities arising under that certain Gas Gathering Agreement dated effective
June 1, 2005 by and between Slaterdome Gathering Line, LLLP, Slaterdome Gas,
Inc., Seller and Buyer (the "Gas Gathering Agreement") due and payable between
the Effective Date and June 1, 2007; and (b) all of Seller's obligations and
liabilities due and payable under the Gas Gathering Agreement from and after
June 1, 2007. All of Seller's obligations and liabilities under the Gas
Gathering Agreement, as described in this Section, are herein referred to as the
"Assumed Liabilities") and the Cash and Assumed Liabilities are collectively
referred to as the "Purchase Price"), which shall be adjusted in accordance with
the terms of this Agreement. Except as set forth in this Agreement, the Cash
portion of the Purchase Price shall be payable at Closing to Seller in
immediately available funds. Buyer shall pay to Seller the sum of six hundred
thousand dollars (US) ($600,000.00) upon execution of this Agreement as a
performance deposit (the "Performance Deposit"), which Performance Deposit shall
be credited to the Purchase Price at Closing. The Performance Deposit shall be
refunded to Buyer if (i) Seller is unable to close this transaction; or (ii)
this Agreement is terminated by either party pursuant to Section 6(d) hereof.
Buyer with Seller's approval has allocated the Purchase Price among the Subject
Property as set forth on Exhibit F. Buyer and Seller agree to use the values so
allocated as the values for the individual Subject Properties for all purposes,
including but not limited to filing all tax returns.

         3. Effective Date and Closing. The conveyance of the Subject Property
to Buyer shall be effective as of November 1, 2006 at 7:00 a.m. where the
Subject Properties are located (the "Effective Date"), but title thereof shall
be delivered at the "Closing", which shall take place on or before November 30,
2006 (the "Closing Date") unless extended by the mutual agreement of the
Parties.

         4. Representations and Warranties of Seller. Seller represents and
warrants to Buyer as of the date hereof and will represent and warrant at the
Closing, as follows:

                  (a) Corporate Authority. Seller is a limited liability company
          duly organized and in good standing under the laws of the State of
          Colorado, is duly qualified and in good standing to carry on its
          business in the state where the Subject Properties are located, and
          has all the requisite power and authority to enter into, deliver and
          perform this Agreement and carry out the transactions contemplated
          under this Agreement.

                  (b) Valid Agreement. This Agreement constitutes the legal,
          valid and binding Agreement of Seller. At the Closing, all instruments
          required hereunder to be executed and delivered by Seller shall be
          duly executed and delivered to Buyer and shall constitute legal, valid
          and binding obligations of Seller. The execution and delivery by
          Seller of this Agreement, the consummation of the transactions set
          forth herein and the performance by Seller of Seller's obligations
          hereunder have been duly and validly authorized by all requisite
          corporate action on the part of Seller and will not violate, conflict
          with, require the consent or approval of any person or entity under,
          or result in any violation or breach of any provision of (i) any
          agreement, contract, mortgage, lease, license or other instrument to
          which Seller or the Subject Property is a party or by which Seller or
          the Subject Property is bound; (ii) any governmental franchise,
          license, permit or authorization or any judgment or order of judicial
          or governmental body applicable to Seller or Subject Property, or
          (iii) any law, statute, decree, rule or regulation of any jurisdiction
          in the United States to which Seller or the Subject Property is
          subject.

                                       3
<PAGE>
                  (c) Authorization. This Agreement has been duly authorized,
          executed and delivered by Seller. All instruments required to be
          delivered by Seller at the Closing shall be duly authorized, executed
          and delivered by Seller. This Agreement and all documents executed by
          Seller in connection with this Agreement shall constitute legal, valid
          and binding obligations of Seller, enforceable against Seller in
          accordance with their terms, subject to the effects of bankruptcy,
          insolvency, reorganization, moratorium and similar laws from time to
          time in effect, as well as general principles of equity.

                  (d) Leases. Each of the Leases are in full force and effect
          and are valid and subsisting documents covering the entire estates
          which they purport to cover; and all royalties, rentals and other
          payments due under the Leases have been fully, properly and timely
          paid. Seller will use its commercially reasonable efforts to take all
          action necessary to keep the Leases in force and effect until the
          Closing.

                  (e) Taxes. All due and payable ad valorem, property,
          production, severance and similar taxes and assessments based on or
          measured by the ownership of property or the production of
          hydrocarbons or the receipt of proceeds therefrom on the Subject
          Property, which become due prior to the Closing Date for any periods
          prior to the Effective Date, have been properly paid.

                  (f) Brokers. Seller has incurred no obligation or liability,
          contingent or otherwise for brokers' or finders' fees with respect for
          this transaction for which Buyer shall have any obligation or
          liability.

                  (g) Maintenance of Interests. Seller has maintained and will
          continue to maintain from date of this Agreement until the Closing,
          and has operated and will continue to operate the Subject Property in
          a reasonable and prudent manner, in full compliance with applicable
          law, including the Environmental Laws, and orders of any governmental
          authority, to maintain insurance and bonds now in force with respect
          to the Subject Property, to pay when due all costs and expenses coming
          due and payable in connection with the Subject Property, and to
          perform all of the covenants and conditions contained in the Leases
          and all related agreements.

                  (h) Suits and Claims. No suit, action, claim, or other
          proceeding is now pending or, to Seller's knowledge, threatened before
          any court, governmental agency against the Subject Property or Seller,
          and Seller shall promptly notify Buyer of any such proceeding which
          arises or is threatened prior to the Closing.

                  (i) Access. To the same extent Seller has such right, at all
          times prior to the Closing, Buyer and the employees and agents of
          Buyer shall have access to the Subject Property at Buyer's sole risk,
          cost and expense at all reasonable times, and shall have the right to
          conduct equipment inspections, environmental audits, and any other
          investigation of the Subject Property on one day's prior notice to
          Seller and upon agreement with Seller as to time and place of such
          actions.

                  (j) Environmental Matters. Seller has complied with and is
          currently complying with all Environmental Laws (as such term is
          defined in Section 7(f) applicable to the Subject Properties, or any
          material limitations, restrictions, conditions, standards, obligations
          or timetables contained in any Environmental Laws. Seller is not aware
          of any actual or alleged material violation of Environmental Laws, or
          any material liabilities or potential material liabilities (whether
          accrued, absolute, contingent, unliquidated or otherwise), including
          any investigatory, remedial or corrective obligations relating to
          Seller or the Subject Properties arising under Environmental Laws.

                                       4
<PAGE>
                  (k) Operating Costs. All costs incurred, and currently due and
          payable, in connection with the operation of the Subject Property have
          been fully paid and discharged by Seller; all costs incurred, but not
          yet due and payable, in connection with the operation of the Subject
          Property will be fully paid and discharged in the ordinary course of
          business.
                  (l) Bankruptcy. There are no bankruptcy, reorganization or
          receivership proceedings pending, being contemplated by, or threatened
          against Seller.

                  (m) Compliance with Contracts and Leases. Seller has complied
          with all material terms of the Contracts specified on Exhibit "C" and
          with the Leases described on Exhibit "A" and "B",and there are no
          material breaches of the terms of the Contracts, Leases or agreements
          affecting the Subject Property. Except as included on Exhibit "C",
          there are no material contracts or agreements which would affect the
          Properties and be binding upon Buyer after Closing. To Seller's best
          knowledge, each of the Contracts are in full force and effect and
          Seller has is not aware of any default with respect to any of the
          Contracts.

                  (n) Compliance with Laws. To Seller's best knowledge, the
          Subject Property has been owned, used, possessed and operated in
          compliance with all applicable federal, state and local laws, rules,
          orders and regulations. Seller has not violated or received notice of
          the violation of any regulations, rules or orders promulgated by any
          federal, state or local regulatory agency or governmental authority
          which, if adversely decided, would have a material adverse effect on
          the ownership or operation of the Subject Properties or the revenues
          attributable thereto.

                  (o) No Liens. Except for Permitted Encumbrances, the Subject
          Properties will be conveyed to Buyer at the Closing free and clear of
          all liens, claims and encumbrances.

                  (q) Governmental Approvals. Seller shall obtain all required
          local, federal governmental and/or agency permissions, approvals, and
          consents, as may be required to sell the Subject Property, except for
          consents and approvals which are customarily obtained after closing.

                  (r) Accuracy of Data. Seller represents that (i) the Data, or
          copies thereof, constitute all of the files and information that
          Seller has used in the ordinary course of operating and owning the
          Subject Property, (ii) the Data does not contain any untrue statements
          of material fact, (iii) Seller has made, or prior to Closing will
          make, all Data available to Buyer and (iv) Seller has not
          intentionally withheld any of the Data from Buyer.

                  (s) Existing Condition. Seller has and will continue to
          operate the Subject Property in the ordinary course of business and in
          substantially the same manner as it was operated prior to the
          Effective Date. There have been no material adverse changes in the
          condition of the Subject Property from the Effective Date to the
          Closing Date.

                  (t) Gas Imbalance. Except for the pipeline imbalance reflected
          on Exhibit G ("Gas Imbalance"), there do not exist any gas imbalances
          associated with the Subject Property.

                                       5
<PAGE>
         5. Representations and Warranties of Buyer. Buyer represents and
warrants to Seller as of the date hereof and will represent and warrant at the
Closing, as follows:

                  (a) Corporate Authority. Buyer is a corporation duly organized
         and in good standing under the laws of the State of Colorado, is duly
         qualified and in good standing to carry on its business in the state
         where the Subject Property is located, and has all the requisite power
         and authority to enter into and perform this Agreement and carry out
         the transactions contemplated under this Agreement.

                  (b) Valid Agreement. This Agreement constitutes the legal,
         valid and binding Agreement of Buyer. At the Closing, all instruments
         required hereunder to be executed and delivered by Buyer shall be duly
         executed and delivered to Buyer and shall constitute legal, valid and
         binding obligations of Buyer. The execution and delivery of Buyer of
         this Agreement, the consummation of the transactions set forth herein
         and the performance by Buyer of Buyer's obligations hereunder have been
         duly and validly authorized by all requisite corporate action on the
         part of Buyer and will not conflict with or result in any violation of
         any provision of (i) any agreement, contract, mortgage, lease, license
         or other instrument to which Buyer is a party or by which Buyer is
         bound; (ii) any governmental franchise, license, permit or
         authorization or any judgment or order of judicial or governmental body
         applicable to Buyer, or (iii) any law, statute, decree, rule or
         regulation of any jurisdiction in the United States to which Buyer is
         subject.

                  (c) Governmental Approvals. Buyer shall obtain all required
         local, federal governmental and/or agency permissions, approvals,
         permits, bonds and consents, as may be required to assume Seller's
         obligations and responsibilities attributable to the Subject Property.

                  (d) Bonding. On or before Closing, Buyer shall have obtained
         and posted all appropriate bonds with all governmental agencies having
         jurisdiction over the Subject Properties or the Buyer.

                  (e) Independent Evaluation. Buyer is an experienced and
         knowledgeable investor in the oil and gas business. Buyer has been
         advised by and has relied solely on its own expertise and legal, tax,
         reservoir engineering, environmental and other professional counsel
         concerning this transaction, the Subject Property and value thereof.

                  (f) Physical and Environmental Matters. Buyer will be provided
         the opportunity to conduct an independent inspection of the Subject
         Properties, the public records and Seller's files, including without
         limitation for the purpose of detecting the presence of any
         environmentally hazardous substance or contamination, including
         petroleum, and the presence and concentration of naturally-occurring
         radioactive materials and satisfied itself as to the physical condition
         and environmental condition of the property, both surface and
         subsurface.

                  (g) Brokers. Buyer has incurred no obligation or liability,
         contingent or otherwise for brokers' or finders' fees with respect to
         this transaction for which Seller shall have any obligation or
         liability.

         6. Title Matters.

                                       6
<PAGE>
                  (a) Examination of Files and Records. Upon execution of and
         pursuant to the terms of this Agreement, Buyer shall have the right to
         conduct its investigation of the status of title to the Subject
         Properties. Seller will make available to Buyer its existing Lease,
         Well and title files, production records, Easements, Contracts,
         division orders and other information, available in Seller's files
         relating to the Subject Property and such other information reasonably
         requested from Seller by Buyer (collectively "Data"). Existing
         abstracts and title opinions will not be updated by Seller. Upon
         reasonable advanced notice from Buyer, all such Data shall be made
         available at Seller's office during normal working hours. Seller will
         also permit Buyer to examine and copy at Buyer's expense such Data. If
         Closing does not occur, Buyer shall promptly return all such Data and
         other materials provided by Seller to Buyer hereunder.

                  (b) Notice of Title Defect. Buyer will review title to the
         Subject Property prior to Closing and notify Seller in writing of any
         Title Defect (defined below) it discovers as soon as reasonably
         practicable after its discovery, but in no event less than three (3)
         business days prior to the Closing Date. Any notice provided hereunder
         shall include reasonable evidence to substantiate the Buyer's position,
         including a description of the Title Defect, the basis for the Title
         Defect, the portion of the Lease or other part of the Subject Property
         affected by the Title Defect, the amount by which Buyer believes the
         value of the Subject Property has been reduced because of the Title
         Defect and the computations and information upon which Buyer's belief
         is based. Buyer will be deemed to have conclusively waived any Title
         Defect about which it fails to notify Seller in writing within the
         applicable period specified in the preceding sentence except as
         otherwise provided herein.

                  (c) Procedure. If Buyer properly notifies Seller of a Title
         Defect, Buyer and Seller shall promptly meet and, in good faith,
         negotiate in an effort to agree upon the validity of each claimed Title
         Defect and the resolution of such claimed Title Defects. Absent an
         agreement on the claimed Title Defect, Buyer shall have the option to
         either (i) waive the Title Defect and proceed to Closing, or (ii)
         request that Seller cure the Title Defect, but Seller shall have no
         obligation to cure any Title Defect. If Seller elects not to cure a
         Title Defect, Buyer may either (i) reduce the Purchase Price to account
         for such Title Defect in an amount not to exceed the Allocated Value of
         the affected portion of the Subject Property and receive an assignment
         of such affected Subject Property from Seller or (ii) reject title to
         the affected Subject Property, cause Seller to retain the Subject
         Property, and reduce the Purchase Price by the Allocated Value of the
         affected Subject Property. If Seller elects to attempt to cure the
         Title Defect, Seller will have ninety (90) days following the Closing
         Date to attempt to cure the Title Defect, and during such ninety (90)
         day period the Allocated Value of the affected portion of the Subject
         Property shall be placed in escrow with a mutually agreed upon escrow
         agent and title to the Subject Property will remain with Seller. With
         respect to a Title Defect that Seller is unable to cure within such
         ninety (90) day period following the Closing Date, Buyer may at its
         option either (i) direct the escrow agent, with Seller's consent, to
         refund to Buyer that portion of the Purchase Price that accounts for
         such Title Defect in an amount not to exceed the Allocated Value of the
         affected portion of the Subject Property and receive an assignment of
         the affected Subject Property from Seller, or (ii) direct the escrow
         agent, with Seller's consent, to pay the Allocated Value of the
         affected Subject Property to Buyer, in which case Seller will retain
         title to the affected Subject Property.

                                       7
<PAGE>
                  (d) Right to Terminate Agreement. Notwithstanding anything in
         this Section 6 or Section 7 that follows, in the event the sum of the
         Title Defects and Environmental Defects (defined below) equals or
         exceeds ten percent (10%) of the Purchase Price and Seller elects not
         to cure such Title Defects or Environmental Defects or if Seller elects
         to cure the Title Defects and correct the Environmental Defects and at
         the end of the ninety (90) day period the sum of the uncured Title
         Defects and uncorrected Environmental Defects exceeds ten percent (10%)
         of the Purchase Price, either party may elect to terminate this
         Agreement without liability to the other party, in which case Buyer
         shall be entitled to a refund of the Performance Deposit and, if such
         termination occurs after the Closing, a refund of the Purchase Price.
         If the termination occurs after the Closing, Buyer shall re-assign the
         Subject Property to Seller free and clear of all liens, security
         interests, mortgages, deeds of trust, pledges, charges and other
         burdens created by, through and under Buyer and account to Seller for
         all revenues and expenses that were credited, charged, received or paid
         by Buyer.

                  (e) Definition of Title Defect. For purposes of this
         Agreement, the term "Title Defect" shall mean a matter, individually in
         excess of ten thousand dollars ($10,000.00) or a combination of matters
         in the aggregate in excess of fifty thousand (US) dollars ($50,000.00),
         that would cause the title to the Subject Property to fail to qualify
         as Good and Defensible Title (defined below) or which would otherwise
         reduce the net revenue interest to be conveyed to Buyer as set forth in
         Exhibits "A" and "B". As used herein, the term "Good and Defensible
         Title" shall mean, as to each of the Subject Properties, title to the
         Subject Properties by virtue of which Seller can successfully defend
         against a claim to the contrary made by a third party, based upon
         industry standards in the acquisition of oil and gas properties, and in
         the exercise of reasonable judgment and in good faith, such that (i)
         Seller (and upon Closing, Buyer), by virtue of its ownership interests
         in the Leases described in Exhibit "A", is entitled to receive a
         fractional decimal interest of not less than the Net Revenue Interest
         set forth in Exhibits "A" and "B", for the Subject Properties without
         reduction, suspension, or termination throughout the productive life of
         each such Subject Property (the "Net Revenue Interest); (ii) Seller is
         obligated to bear (and after Closing shall obligate Buyer to bear) a
         fractional decimal interest of not more than the "Working Interest" set
         forth on Exhibits "A" and "B" of the costs and expenses related to the
         maintenance, development, drilling, production, equipping, testing,
         completing, sidetracking, reworking and operation of each Subject
         Property which are set forth on Exhibit "B" without increase throughout
         the productive life of each Subject Property; and (iii) the Subject
         Properties are subject to no liens, encumbrances, obligations or
         defects except those which are Permitted Encumbrances.

                  As used herein, the term "Permitted Encumbrances" shall mean:

          (1) Lessors' royalties, overriding royalties, payments out of
          production, reversionary interests and other burdens affecting
          Seller's Net Revenue Interest if the net cumulative effect of such
          burdens does not operate to (i) reduce the Net Revenue Interest of
          Seller in any Subject Property to less than the Net Revenue Interest
          for such Subject Property as set forth in Exhibit "B"; or (ii)
          increase the Working Interest of Seller in any such Subject Property
          to greater than the Working Interest therefore as set forth in Exhibit
          "B" (unless Seller's Net Revenue Interest therein is increased in the
          same proportion);

          (2) Preferential rights to purchase and required third party consents
          to assignments and similar agreements with respect to which (i)
          waivers or consents are obtained from the appropriate parties; or (ii)
          the appropriate time period for asserting such rights has expired
          without an exercise of such rights;

          (3) All rights to consent by, required notices to, filings with, or
          other actions by governmental entities (including but not limited to
          federal, state, local and foreign) in connection with the sale or
          conveyance of oil and gas leases or interests therein if the same are
          customarily obtained subsequent to such sale or conveyance;

                                       8
<PAGE>
          (4) Non-consent penalties applied against the interest of Seller
          arising under applicable operating agreements, which are scheduled on
          Exhibit "C" (including non-consent balances) and taken into account in
          the calculation of the interests shown on Exhibits "A" and "B";

          (5) Easements, rights-of-way, servitudes, permits, surface leases and
          other rights in respect of surface operations which do not interfere
          with or detract from the operations, value or use of the Subject
          Properties by Buyer;

          (6) Such Title Defects as Buyer has waived or released or is deemed to
          have waived pursuant to the terms of this Agreement;

          (7) The terms and conditions of all Leases and Contracts, provided the
          same do not result in a decrease in the Net Revenue Interest or an
          increase of the Working Interest in any of the Properties (unless
          Seller's Net Revenue Interest therein is increased in the same
          proportion);

          (8) Rights of reassignment, to the extent any exist as of the date of
          this Agreement, upon the surrender or expiration of any lease;

          (9) Liens for taxes or assessments not yet due or not yet delinquent;
          and

          (10) Liens, if any, to be released at Closing in a form acceptable to
          Buyer.

                  (f) Definition of Allocated Value. The term "Allocated Value"
         shall be the value agreed upon by the Parties for the Subject Property
         as set forth in Exhibit F.

         7.       Environmental Matters.

                  (a) Inspection. Prior to Closing and upon reasonable prior
         notice to Seller, Buyer will have access to and the opportunity to
         inspect the Subject Property for all purposes, including without
         limitation, for the purposes of detecting the presence of hazardous or
         toxic substances, pollutants or other contaminants, environmental
         hazards, naturally occurring radioactive materials (NORM), produced
         water, air emissions, contamination of the surface and subsurface and
         any other Environmental Defect (defined below). Prior to Closing and
         subject to the other provisions of this Agreement, Buyer will have
         satisfied itself as to the physical and environmental surface and
         subsurface condition of the Subject Property and method of operation.

                  (b) Notice of Environmental Defect. Buyer will notify Seller
         in writing of any Environmental Defect (defined below) it discovers as
         soon as reasonably practicable after its discovery, but in no event
         less than three (3) business days prior to the Closing Date. Any notice
         provided hereunder shall include: (i) appropriate evidence to
         substantiate the Buyer's position, including a description of the
         Environmental Defect, (ii) Buyer's basis for believing that Seller is
         in violation of an Environmental Law, the portion of the Lease or other
         part of the Subject Property affected by the Environmental Defect,
         (iii) the amount by which Buyer believes the value of the Subject
         Property has been reduced because of the Environmental Defect and the
         evidence, computations and information upon which Buyer's belief is
         based. Except as expressly set forth in this Agreement, including
         without limitation as set forth in Section 7(g), below, Buyer will be
         deemed to have conclusively waived any Environmental Defect about which
         it fails to notify Seller in writing within the applicable period
         specified in this Section 7(b).

                                       9
<PAGE>
                  (c) Procedure. If Buyer properly notifies Seller of an
         Environmental Defect, Buyer shall have the option to either (i) waive
         the Environmental Defect and proceed to Closing, or (ii) request that
         Seller correct the Environmental Defect within ninety (90) days of such
         notice, but Seller shall have no obligation to correct any
         Environmental Defect.. If Buyer requests that Seller correct an
         Environmental Defect and Seller elects not to correct such
         Environmental Defect, Buyer may, at its sole option, either (i) reduce
         the Purchase Price to account for such Environmental Defect in an
         amount not to exceed the Allocated Value of the affected portion of the
         Subject Property and accept a conveyance of the Subject Property or
         (ii) remove the affected portion of the Subject Property from the
         Subject Property being conveyed and adjust the purchase price
         accordingly. If Seller elects to attempt to correct the Environmental
         Defect, Seller will have ninety (90) days following the Closing Date to
         attempt to correct the Environmental Defect, and the portion of the
         Purchase Price attributable to such Environmental Defect will be held
         in an escrow account with a mutually acceptable escrow agent, and title
         to the Subject Property will remain with Seller. With respect to a
         Environmental Defect that Seller is unable to cure within such ninety
         (90) day period following the Closing Date, Buyer may either (i) waive
         the Environmental Defect and take title to the affected Subject
         Property with the amount in the escrow account being paid to the
         Seller, or (ii) receive a refund from the escrow account for the
         Allocated Value of the affected Subject Property and allow Seller to
         retain title to the affected Subject Property.

                  (d) Right to Terminate Agreement. Notwithstanding anything in
         this Section 7 or the preceding Section 6, in the event the sum of the
         Title Defects and Environmental Defects exceeds ten percent (10%) of
         the Purchase Price and Seller elects not to cure such Title Defects and
         correct such Environmental Defects or if Seller elects to cure the
         Title Defects and correct the Environmental Defects and at the end of
         the ninety (90) day period the sum of the uncured Title Defects and
         uncorrected Environmental Defects exceeds ten percent (10%) of the
         Purchase Price, either Party may elect to terminate this Agreement
         without liability to the other Party in which case Buyer shall be
         entitled to a refund of the Performance Deposit and, if such
         termination occurs after the Closing, a refund of the Purchase Price.
         If the termination occurs after the Closing, Buyer shall re-assign the
         Subject Property to Seller free and clear of all liens, security
         interests, mortgages, deeds of trust, pledges, charges and other
         burdens created by, through and under Buyer and account to Seller for
         all revenues and expenses that were credited, charged, received or paid
         by Buyer.

                  (e) Definition of Environmental Defect. As used herein, an
         "Environmental Defect" shall mean a condition affecting a Subject
         Property that is a violation of Environmental Law and which
         individually would cost in excess of ten thousand dollars ($10,000.00)
         to remediate or several conditions affecting the Subject Property that
         is a violation of Environmental Law and which in the aggregate in
         excess of fifty thousand (US) dollars ($50,000.00) to remediate.

                                       10
<PAGE>
                  (f) Definition of Environmental Laws. As used herein, the term
         "Environmental Laws" shall mean any and all federal, state and local
         laws, statutes, regulations, rules, orders, ordinances, judgments, or
         permits of any governmental authority pertaining to health, welfare,
         the environment, wildlife and natural resources in effect in any and
         all jurisdictions in which the Subject Property is located, including
         without limitation, the Clean Water Act, as amended, the Clean Air Act,
         as amended, and the Federal Water Pollution Control Act, as amended,
         the Oil Pollution Act of 1990 ("OPA90"), as amended, the Rivers and
         Harbors Act of 1899, as amended, the Safe Drinking Water Act, as
         amended, the Comprehensive Environmental Response, Compensation and
         Liability Act ("CERCLA"), as amended, the Superfund Amendments and
         Reauthorization Act of 1986 ("SARA"), as amended, the Resource
         Conservation and Recovery Act ("RCRA"), as amended, the Hazardous and
         Solid Waste Amendments Act of 1984, as amended, the Toxic Substances
         Control Act, as amended, the Occupational Safety and Health Act
         ("OSHA"), as amended, and the Hazardous Materials Transportation Act,
         as amended.

                  (g) Environmental Indemnity. Notwithstanding anything herein
         to the contrary, for a period of one year following the date of
         Closing, Seller assumes full responsibility for, and agrees to
         indemnify, defend, and hold harmless Buyer from and against any and all
         loss, liability, claims, fines, expenses, costs (including reasonable
         attorneys' fee) and causes of action (collectively "Claims") caused by
         or arising from an Environmental Defect attributable to Seller's
         activities or omissions while Seller was operator of the Subject
         Property. From and after one year following the date of Closing, Buyer
         assumes full responsibility for and agrees to indemnify, defend, and
         hold harmless Seller from and against all loss, liability, claims,
         fines, expenses, costs (including reasonable attorneys' fee) and causes
         of action caused by or arising from an Environmental Defect
         attributable to Buyer's activities or omissions for all periods after
         the date of Closing. The Claims covered by Seller's indemnity herein
         shall be limited to those arising from or in connection with claims,
         lawsuits or causes of action against Buyer by third parties, or
         proceeding, investigations or order of regulatory or governmental
         agencies.

         8.  Conditions Precedent to Each Party's Obligation to Close.

                  (a) Conditions Precedent to Seller's Obligation to Close. Each
         and every obligation of Seller to consummate the transactions described
         in this Agreement shall be subject to the fulfillment on or before the
         Closing Date of the following conditions precedent:

                    (i)  All representations and warranties of Buyer contained
                         in this Agreement shall be true and correct in all
                         material respects at and as of Closing as though such
                         representations and warranties were made at and as of
                         such time and Buyer shall deliver a certificate at
                         Closing to such effect; and

                    (ii) Buyer shall have complied in all material respects with
                         all obligations and conditions contained in this
                         Agreement to be performed or complied with by Buyer on
                         or prior to the Closing.

                  (b) Conditions Precedent to Buyer's Obligation to Close. Each
         and every obligation of Buyer to consummate the transactions described
         in this Agreement shall be subject to the fulfillment on or before the
         Closing Date of the following conditions precedent:

                    (i)  All representations and warranties of Seller contained
                         in this Agreement shall be true and correct in all
                         material respects at and as of Closing as though such
                         representations and warranties were made at and as of
                         such time and Seller shall deliver a certificate at
                         Closing to such effect; and

                    (ii) Seller shall have complied in all material respects
                         with all obligations and conditions contained in this
                         Agreement to be performed or complied with by Seller on
                         or prior to the Closing.

                                       11
<PAGE>
                    (iii) All consents and approvals, if any, whether required
                         contractually or by applicable federal, state, local or
                         tribal Law, or otherwise necessary for the execution,
                         delivery and performance of this Agreement by Seller
                         (except for consents and approvals of governmental
                         entities or tribal authorities customarily obtained
                         subsequent to the transfer of title) shall have been
                         obtained and delivered to Buyer by the Closing and
                         shall not have been withdrawn or revoked;

         9.   Covenants of Seller and Buyer Prior to Closing.

                  (a) Operations. Until Closing, Seller shall do the following:

                            (i) Operate the Subject Property in a good and
                  workmanlike manner and in substantially the same manner as it
                  previously operated the Subject Property;

                           (ii) Maintain insurance now in force with respect to
                  the Subject Property;

                           (iii) Notify Buyer of any claim or demand which might
                  adversely affect title to, the environmental condition of or
                  the operation of the Subject Property;

                           (iv) Pay costs and expenses attributable to the
                  Subject Property as they become due.

                  (b) Negative Covenants. Until Closing, Seller shall not do any
         of the following with regard to the Subject Property without first
         notifying Buyer:

                           (i) Abandon any Well unless required to by a
                  regulatory agency;

                           (ii) Release or terminate all or any portion of a
                  Lease, Contract or Easement;

                           (iii) Commence or consent to an operation if the
                  estimated cost of the operation exceeds seven thousand five
                  hundred dollars ($7,500.00) net to the Seller's interest
                  except for those operations for which Buyer provides its
                  consent;

                           (iv) Remove, dispose, convey, encumber, mortgage or
                  pledge of any of the Subject Property or Equipment; or

                           (v) Amend a Lease, Contract or Easement or enter into
                  any new contracts affecting the Subject Property.

                           (vi) Incur or consent to any expenses as operator of
                  the subject property that are not both normal recurring
                  operating expenses and which individually exceed $20,000 per
                  well, unless Buyer has expressly consented in writing to such
                  expense.

                  (c) Notice of Loss. From the date hereof until Closing, Seller
                  shall promptly notify Buyer of any material loss or damage to
                  the Subject Property, Equipment, Wells, or any part thereof.

                                       12
<PAGE>
                  (d) Buyer's and Seller's Covenant Regarding New Operations and
                  Management Services. Prior to Closing, Buyer and Seller agree
                  that neither Party will propose any new wells or workovers or
                  recompletions of existing wells on the Subject Property,
                  except as may be necessary to preserve Seller's interest in
                  any Leases and Wells comprising the Subject Property. Further,
                  Seller agrees that between the Effective Date and the Closing
                  Date neither Seller nor its Affiliates shall charge Buyer with
                  any payroll attributable to Cedar Ridge employees or for any
                  services billed by CBM Services, International relating to
                  management, supervision or operation of the Leases or Wells
                  described In Exhibits A and B.

         10. Closing. The Closing shall be held at Seller's counsel offices,
Beatty & Wozniak, P.C., 216 16th Street, Suite 1100, Denver, Colorado 80202, or
such other place as the Parties shall mutually agree. Seller shall provide Buyer
a "Preliminary Closing Settlement Statement" two (2) business days prior to
Closing respecting adjustments to the Purchase Price as well as wiring
instructions designating the account or accounts to which the Cash is to be
delivered. At the Closing, the following shall occur:

               (a) Buyer and Seller shall agree upon a "Closing Settlement
          Statement," which shall include adjustments to the Purchase Price,
          which are known as of the Closing Date, as follows:

                           (i) The estimated amount to be received by Buyer,
                  including any applicable bonuses, for Seller's interest in the
                  quantity of saleable oil in storage on the Effective Date, net
                  of all applicable taxes and net of any charges attributable to
                  such oil that are deducted under the Contract by the purchaser
                  before remitting payment, which estimated amount shall be
                  corrected to the actual amount received in the Final
                  Settlement Statement (defined below);

                           (ii) The amounts of all operating and capital
                  expenditures that are attributable to the Leases, Wells or
                  Equipment for the period from the Effective Date to the
                  Closing Date;

                           (iii) All amounts due and payable by Buyer, as a
                  current working interest owner in the Subject Property, to
                  Seller, as operator of the Subject Property, as of the
                  Effective Date, plus any additional amounts properly billed by
                  Seller, as operator, to Buyer, as a working interest owner,
                  for operations conducted on the Subject Property for the
                  period of time between the Effective Date and the Closing
                  Date;

                           (iv) The amount received by Sellers for the sale or
                  other disposition of produced natural gas and crude oil, net
                  of all taxes for which Seller was not reimbursed, for the
                  period from the Effective Date to the Closing Date;

                           (v) The amount of proceeds (other than accounts
                  receivable) received by Seller for disposition after the
                  Effective Date of any substances produced from the Subject
                  Property; and

                           (vi) Any ad valorem, property, production, severance
                  and similar taxes and assessments on the Subject Property for
                  the calendar year 2006 shall be prorated between Seller and
                  Buyer as of the Effective Date. Upon receipt of an invoice for
                  ad valorem taxes for 2006, Buyer shall forward a copy of same
                  to Seller and Seller shall be responsible for payment to Buyer
                  of Seller's prorated shares of such taxes within thirty (30)
                  days of receipt of such statement. In the event Seller
                  receives such ad valorem tax statement, Seller shall forward
                  such statement to Buyer and Seller shall deliver to Buyer
                  Seller's prorated shares of such taxes no later than ten (10)
                  days prior to the date on which such taxes are due and
                  payable. It is the intent of this provision that Seller shall
                  bear its proportionate part of ad valorem taxes for tax year
                  2006 only, which taxes are billed in 2007.

                                       13
<PAGE>
                           (vii) Upward or downward, as appropriate, by an
                  amount equal to Three Dollars ($3.00) per MMBtu for the Gas
                  Imbalance existing as of the Effective Date.

               (b) Seller shall execute, acknowledge and deliver the following:

                           (i) an Assignment, Conveyance and Bill of Sale in a
                  mutually satisfactory and recordable form containing a special
                  warranty of title, substantially in the form of which is
                  attached hereto as Exhibit "D" (the "Assignment");

                           (ii) counterpart assignments of operating rights and
                  of record title to the Leases on officially approved forms to
                  satisfy applicable governmental requirements;

                           (iii) letters-in-lieu of transfer orders, and other
                  instruments conveying title to the Subject Property and the
                  production therefrom to Buyer. Buyer shall record and file the
                  Assignment and Deed of record in a timely manner.

               (c) Buyer shall deliver the remaining amount due of the Purchase
          Price, as adjusted pursuant to this Section 10 and Sections 6 and 7,
          to Seller, or, if applicable, Seller's Qualified Intermediary under a
          IRS Section 1031 "Like Kind" exchange, by wire transfer and Buyer
          shall deliver to Seller an executed notice of assumption of the
          Assumed Liabilities in a form to be mutually agreed to by the Parties.
          The Final Purchase Price provided for under this Agreement excludes
          any sales taxes or other taxes in connection with the sale of property
          pursuant to this Agreement. If a determination is ever made that a
          sales tax or other transfer tax applies, Buyer shall be liable for
          such tax. Buyer shall also be liable for any applicable conveyance,
          transfer and recording fees, and real estate transfer stamps or taxes
          imposed on any transfer of property pursuant to this Agreement.

               (d) The Parties shall execute and deliver any designations of
          operator requested by Buyer and any other instruments necessary to aid
          in the transfer of operations to Buyer. Once executed at Closing,
          Seller shall file any Change of Operator notifications with the
          appropriate governmental agency(ies) providing filed copies to Buyer.

               (e) Seller shall deliver the Data (as defined hereinafter) to
          Buyer.

               (f) Seller shall deliver exclusive possession of the Subject
          Property to Buyer.

               (g) The Parties shall execute and deliver all necessary side
          letter agreements to fulfill the purpose of this Agreement.

         11. Post-Closing Covenants.

                                       14
<PAGE>
                  (a) Final Settlement Statement. Not more than ninety (90) days
         after the Closing, Seller shall prepare and deliver to Buyer, in
         accordance with this Agreement, a Final Settlement Statement setting
         forth each adjustment or payment which was not finally determined as of
         the Closing and showing the calculation of such adjustments. As soon as
         practicable after receipt of the Final Settlement Statement, Buyer
         shall deliver to Seller a written report containing any changes which
         Buyer proposes be made to the Final Settlement Statement. The parties
         shall undertake to agree with respect to the amounts due pursuant to
         such post-Closing adjustments no later than one hundred twenty (120)
         days after the Closing. The date upon which such agreement is reached
         or upon which the Final Purchase Price is established shall be called
         the "Final Settlement Date". In the event that (1) the Final Purchase
         Price is more than the amount paid to Seller at Closing, Buyer shall
         pay to Seller in immediately available funds the amount of such
         difference, or (2) the Final Purchase Price is less than the amount
         paid to Seller at Closing, Seller shall pay to Buyer in immediately
         available funds the amount of such difference. Payment by Buyer or
         Seller shall be made within five business days of the Final Settlement
         Date and denominated in US Dollars.

                  (b) Additional Payments Received. After the Final Settlement
         Date, Seller covenants and agrees that it will hold and promptly
         transfer and deliver to Buyer, from time to time as and when received
         by it, any cash, checks with appropriate endorsements (using its
         reasonable efforts not to convert such checks into cash), or other
         property that it may receive which properly belongs to Buyer, and will
         account to Buyer for all such receipts.

                  (c) Assumption of Obligations. From and after the Effective
         Date, Buyer assumes, will be bound by, and agrees to perform all
         express and implied covenants and obligations of Seller relating to the
         Subject Property, whether arising under (i) the Leases, prior
         assignments of the Leases, the Contracts (including without limitation
         the Gas Gathering Agreement), the Easements, the Permits or any other
         contractually-binding arrangements to which the Subject Property (or
         any component thereof) may be subject and which will be binding on
         Buyer and/or the Subject Property (or any component thereof) after the
         Closing or (ii) any applicable laws, ordinances, rules and regulations
         of any governmental or quasi-governmental authority having jurisdiction
         over the Subject Property. Buyer also assumes Seller's proportionate
         part of the expenses and costs of plugging and abandoning the Wells and
         restoration of operation sites, all in accordance with the applicable
         laws, regulations and contractual provisions. Buyer shall assume the
         risk of any change in the condition of the Subject Property from the
         Effective Date to the Closing, unless such change constitutes a Defect
         under Section 7 above, except to the extent any change of condition is
         attributable to the willful misfeasance or gross negligence of Seller.

                  The Buyer understands and agrees that the Subject Property is
         subject to all existing Contracts relating to the Subject Property.
         Buyer shall assume and be responsible for all such obligations of
         Seller as of the Effective Date. Buyer shall assume all rights and
         duties of the operator of any of the Subject Property which are
         presently operated by Seller, including but not limited to all
         necessary filings with state agencies to properly effectuate such
         transfer.

                  (d) Cooperation and Providing Information. In the event that
         Buyer is required to provide audited financial statements for the
         Subject Properties acquired under this agreement pursuant to Rule
         3-05(b) of Regulation SX, Item 2.01 of Form 8-K, or under any other
         federal securities law requirement, then Seller and its Affiliates
         agree to use their commercially reasonable efforts to provide documents
         and other materials as reasonably requested by Buyer's auditors within
         10 business days of a request from either Buyer or Buyer's auditors.

                                       15
<PAGE>
         12. Costs and Revenues After Effective Date. Seller shall be
responsible for the payment of all costs, liabilities and expenses incurred in
the ownership and operation of the Subject Property prior to the Effective Date
and not yet paid or satisfied. Buyer shall be responsible for payment (at
Closing or thereafter if not reflected on the Preliminary Closing Settlement
Statement) of all costs, liabilities and expenses incurred in the ownership and
operation of the Subject Property after the Effective Date to the Closing Date.
Such costs and expenses shall include any necessary and reasonable expenses
incurred by Seller in the operation, protection or maintenance of the Subject
Property. All hydrocarbons produced from the Subject Property prior to the
Effective Date, all oil stock balances held in the tanks as of the Effective
Date, and all proceeds from the sale thereof shall be the property of Seller.
All hydrocarbons produced after the Effective Date shall be the property of
Buyer. Seller shall remit production proceeds, if any, received by Seller from
sale of hydrocarbons belonging to Buyer, less expenses which Buyer is
responsible for paying pursuant to this section, to Buyer immediately upon
receipt. To the extent possible, adjustments shall be made to the Purchase Price
to account for such costs and revenues in the Preliminary Settlement Closing
Statement or if not liquidated by such date, they shall be addressed in the
Final Settlement Statement.

         13. Casualty Loss. If, prior to the Closing Date, any portion of the
Subject Property shall be destroyed by fire or other casualty, Buyer shall have
the right to treat such affected property as a Title Defect under Section 6
above. Should the portion of Subject Property affected be material in Buyer's
reasonable opinion, Buyer shall have the right to exclude the affected Subject
Property from this Agreement by giving notice thereof to Seller and the purchase
price will be adjusted accordingly.

14. Independent Investigation and Disclaimer. The express representations of
Seller set forth in this Agreement are exclusive and in lieu of any and all
other representations. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, EXCEPT
AS EXPRESSLY SET FORTH IN THIS AGREEMENT OR THE ASSIGNMENT, SELLER MAKES
ABSOLUTELY NO REPRESENTATION OR WARRANTY, EXPRESS, IMPLIED OR STATUTORY, AS TO
(a) TITLE TO ANY OF THE SUBJECT PROPERTY, (b) THE ABILITY OF ANY COMPONENT OF
THE SUBJECT PROPERTY TO PRODUCE ANY HYDROCARBONS, (c) THE AMOUNTS, QUALITY OR
DELIVERABILITY OF HYDROCARBON RESERVES ATTRIBUTABLE TO THE SUBJECT PROPERTY, OR
ANY PART THEREOF, (d) GEOLOGICAL GEOPHYSICAL OR OTHER INTERPRETATION OF ANY
ECONOMIC EVALUATION, (e) PRESENT OR FUTURE SALES PRICES, OPERATING COSTS, OR
OTHER ECONOMIC FACTORS, OR (f) THE CONDITION OR STATE OF REPAIR OF ANY WELL OR
EQUIPMENT RELATING TO THE SUBJECT PROPERTY. BUYER AGREES AND ACKNOWLEDGES THAT,
PRIOR TO CLOSING IT WILL HAVE ACCESS TO, AND THE OPPORTUNITY TO INSPECT, THE
SUBJECT PROPERTY FOR ALL PURPOSES, INCLUDING WITHOUT LIMITATION FOR PURPOSES OF
DETERMINING ITS PHYSICAL AND ENVIRONMENTAL CONDITION, BOTH SURFACE AND
SUBSURFACE; AND FURTHER THAT BUYER HAS MADE ITS OWN INDEPENDENT INVESTIGATION,
ANALYSIS AND EVALUATION OF THE SUBJECT PROPERTY, AND EACH COMPONENT THEREOF
(INCLUDING BUYER'S OWN ESTIMATE AND APPRAISAL OF THE EXTENT AND VALUE OF THE
PETROLEUM, NATURAL GAS AND OTHER HYDROCARBON RESERVES [IF ANY] RESPECTING EACH
COMPONENT OF THE SUBJECT PROPERTY). THE PERSONAL PROPERTY (SURFACE AND
SUBSURFACE) CONVEYED AS PART OF THE SUBJECT PROPERTY ARE SOLD HEREUNDER "WHERE
IS, AS IS, WITH ALL FAULTS", AND WITHOUT ANY WARRANTIES OR REPRESENTATIONS OF
ANY KIND OR CHARACTER, EXPRESS OR IMPLIED OR STATUTORY, REGARDING THE CONDITION
OR STATE OF REPAIR OF ANY OF THE EQUIPMENT COMPRISING PART OF THE SUBJECT
PROPERTY.

                                       16
<PAGE>

         15.   Termination. This Agreement may be terminated in accordance with
the following provisions and the Performance Deposit shall be refunded to Buyer:

          (a)  By the Seller if Sellers conditions set forth in Section 8(a) are
               not satisfied through not fault of Seller, or are not waived by
               Seller, as of the Closing Date;

          (b)  By the Buyer if the Buyers conditions set forth in Section 8(b)
               are not satisfied through not fault of Buyer, or are not waived
               by Buyer, as of the Closing Date;

          (c)  By either the Buyer or the Seller pursuant to Sections 6(d) or
               7(d).

         15.   Indemnification.

                  (a) By Seller. Except as specifically provided herein, Seller
         agrees to indemnify and hold harmless Buyer, its officers, directors,
         employees and agents, from all claims, losses, costs, liabilities and
         expenses (including reasonable attorneys' fees and costs) arising out
         of or resulting from Seller's ownership or operation of the Subject
         Property prior to the Closing Date.

                  (b) By Buyer. Except as specifically provided herein, Buyer
         agrees to indemnify and hold harmless Seller, its officers, directors,
         employees and agents, from all claims, losses, costs, liabilities and
         expenses (including reasonable attorneys' fees and costs) arising out
         of or resulting from Buyer's ownership or operation of the Subject
         Property after the Closing Date.

         16.   Miscellaneous.

                  (a) Further Assurances. Seller agrees to execute any documents
         which it has the authority to execute, whether before or after the
         Closing, to aid Buyer in clearing or perfecting title and ownership to
         the Subject Property, and assuming duties as operator of Subject
         Property, and to facilitate the receipt of the proceeds of the sale of
         the production therefrom and attributable thereto. Buyer shall make any
         request for execution of such document in writing and shall provide
         Seller with a copy of the document.

                  (b) Entire Agreement. This Agreement together with the
         Exhibits attached hereto, shall constitute the complete agreement
         between the parties hereto and shall supersede all prior agreements and
         negotiations, whether written or oral, and any representations or
         conversations with respect to the Subject Property.

                  (c) Confidentiality. If the Closing does not occur, then for a
         period of five (5) years, Buyer will use its best efforts to keep all
         the information furnished by Seller to Buyer hereunder or in
         contemplation hereof strictly confidential including without limit the
         Purchase Price and other terms of this Agreement, and will not use any
         of such information to Buyer's advantage or in competition with Seller,
         except to the extent such information (i) was already in the public
         domain, not as a result of disclosure by Buyer, (ii) was already known
         to Buyer, (iii) is developed by Buyer independently from the
         information supplied by Seller, or (iv) is furnished to Buyer by a
         third party independently of Buyer's investigation pursuant to the
         transaction contemplated by this agreement.

                  (d) Notices. All communications required or permitted under
         this Agreement shall be in writing and may be sent by facsimile. Such
         communication shall be deemed made when actually received, or if mailed
         by registered or certified mail, postage prepaid, addressed as set
         forth below, shall be deemed made three days after such mailing. Faxes
         will be deemed to be received when reflected in the fax confirmation
         sheet. Either party may, by written notice to the other, change the
         address for mailing such notices.

                                       17
<PAGE>
              Notices to Seller:        Cedar Ridge LLC
                                        484 Turner Drive Building B, Suite 3
                                        Durango Colorado 81303
                                        Attn: Terry L. Logan
                    Title: Manager
                                        Fax No.: (970) 382-9820

              Notices to Buyer:         New Frontier Energy, Inc.
                                        1789 W. Littleton Blvd.
                                        Littleton, CO 80120
                                        Attn:    Paul G. Laird
                                        Title:   President
                                        Fax No.303-794-9985

                  (e) Binding Effect. This Agreement shall be binding upon and
         shall inure to the benefit of the parties hereto, and their successors
         and assigns; provided, no assignment by either party shall be made
         without the express consent of the other party and if such consent is
         granted, no assignment shall relieve such party of any of its
         obligations hereunder.

                  (f) Counterparts. This Agreement may be executed in any number
         of counterparts, which taken together shall constitute one instrument
         and each of which shall be considered an original.

                  (g) Law Applicable and Venue. This Agreement shall be governed
         by and construed in accordance with the laws of the state of the
         location of the Subject Properties. If the Subject Properties are
         located in more than one state, the laws of the State of Colorado shall
         govern.

                  This Agreement shall be subject to the exclusive jurisdiction
         of the courts in the County of Arapahoe in the State of Colorado. The
         parties to this Agreement agree that any breach of any term or
         condition of this Agreement shall be deemed to be a breach occurring in
         the State of Colorado by virtue of a failure to perform an act required
         to be performed in the State of Colorado and irrevocably and expressly
         agree to submit to the jurisdiction of the courts of the State of
         Colorado for the purpose of resolving any disputes among the parties
         relating to this Agreement or the transactions contemplated hereby. The
         parties irrevocably waive, to the fullest extent permitted by law, any
         objection which they may now or hereafter have to the laying of venue
         of any suit, action or proceeding arising out of or relating to this
         Agreement, or any judgment entered by any court in respect hereof
         brought in the State of Colorado, and further irrevocably waive any
         claim that any suit, action or proceeding brought in the State of
         Colorado has been brought in an inconvenient forum.

                  (h) Incorporation of Exhibits. All exhibits and schedules
         referred to herein are attached hereto and are made a part hereof by
         this reference.

                  (i) Survival. Except for the special warranty of title which
         is incorporated in the Assignment, all other indemnities,
         representations, warranties and provisions of this Agreement and except
         for the representations and warranties provided for in Section 4(e)
         which shall survive indefinitely, all other indemnities,
         representations, warranties and provisions of this Agreement shall
         survive the Closing for a period of one (1) year after the Effective
         Date at which time all such indemnities, representations, warranties
         and other provisions hereof shall expire.

                                       18
<PAGE>
                  (j) Assignment. Neither Party may assign its rights or
         delegate its duties hereunder except with the prior, written consent of
         the other Party.

                  (k) Headings. The headings of the articles and sections of
         this Agreement are for guidance and convenience of reference only and
         shall not limit or otherwise affect any of the terms and provisions of
         this Agreement.

                  (l) Timing. Time is of the essence in this Agreement.

                  (m) Attorneys' Fees. The prevailing party in any dispute
         hereunder shall be entitled to recover its attorneys' fees and costs.

                  (n) Expenses. All fees, costs and expenses incurred by the
         Parties in negotiating this Agreement and in consummating the
         transactions contemplated by this Agreement shall be paid by the Party
         that incurred such fees, costs and expenses.

                  (o) Amendment and Waiver. This Agreement may be altered,
         amended or waived only by a written agreement executed by the Party to
         be charged. No waiver of any provision of this Agreement shall be
         construed as a continuing waiver of the provision.

                  (p) Announcements. Neither Party shall announce or otherwise
         publicize the existence of this Agreement, its terms and conditions or
         the transactions contemplated hereby without first providing the other
         Party the opportunity to review the proposed announcement and obtaining
         the other Party's prior, written consent to such proposed announcement,
         which consent shall not be unreasonably withheld. If either Party is
         required by law to make an announcement concerning this Agreement, the
         other Party shall be provided the opportunity to review and consent to
         such announcement prior to the release of such announcement and failure
         to respond to a proposed announcement, required by law, within three
         business days from notification will constitute consent..

                  (q) Successors and Assigns. This Agreement is binding upon and
         shall inure to the benefit of the Parties and, except where prohibited,
         their successors, representatives or assigns.

                  (r) Third-Party Beneficiaries. Unless expressly stated to the
         contrary, no third party is intended to have any rights, benefits or
         remedies under this Agreement.

                  (s) Severance. If any provision of this Agreement is found to
         be illegal or unenforceable, the other terms of this Agreement shall
         remain in effect and this Agreement shall be construed as if the
         illegal or unenforceable provision had not been included.

                                       19
<PAGE>
                  (t) Availability of ss.1031 "Like-Kind" Exchange. Seller may
         desire to exchange, for other property of like kind and qualifying use
         within the meaning of Section 1031 of the Internal Revenue Code of
         1986, as amended and the Regulations promulgated thereunder, title in
         the property which is the subject of this contract. Owner expressly
         reserves the right to assign its rights, but not its obligations,
         hereunder to a Qualified Intermediary as provided in IRC Reg.
         1.1031(k)-1(g)(4). Buyer makes no representation of any kind to Seller
         that any particular tax treatment will be given as a result of the
         Like-Kind Exchange. Buyer shall not be obligated to pay any additional
         costs or incur any additional obligations in its purchase of the
         Subject Property if such costs are the result of Seller's Like-Kind
         Exchange, and Seller shall hold harmless and indemnify Buyer from and
         against all claims, losses and liabilities, if any, resulting from such
         a Like-Kind Exchange.

                       [SIGNATURES ON THE FOLLOWING PAGE]

                                       20
<PAGE>

         IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed below by their duly authorized representatives.

            SELLER                                    BUYER

CEDAR RIDGE LLC                            NEW FRONTIER ENERGY, INC.

By: /s/ Terry Logan                        By: /s/ Paul G. Laird
    ------------------------------             ------------------------------

Title: Managing Member Cedar Ridge, LLC    Title: President
       --------------------------------           ---------------------------

Date:  November 3, 2006                    Date:  November 3, 2006
       ---------------------------                ---------------------------

                                       21
<PAGE>

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