Document:

January
      30, 2006

    

    Eternal
      Energy Corp.

    Attention:
      Mr. Brad Colby

    

    Via:
      Email

    

    Dear
      Brad, 

    

    
      	Re:  
              	
              Farmout
                Offer - UKCS Quad 14

              Amending
                Agreement January 30, 2006

            

    

     

    Further
      to our recent discussions this letter agreement will set forth the basic terms
      and conditions of International Frontier Resources Corporation (“IFR”) offer to
      Eternal Energy Corp. (“EEC”) to farmin on UKCS Quad 14, blocks 14/23 (SE/4)
      14/28a and 14/29b (255 sq km) herein after referred to as “Quad 14
      acreage”.

    

    Quad
      14 - Background

    

    The
      Quad
      14 acreage has been, or is in the process of, being converted to a traditional
      license from a promote license. In our discussion you indicated that EEC is
      interested in participating in the drilling of a commitment well on the Quad
      14
      acreage. In this regard IFR advises as follows; 

    

    	·  	
            The
              license is currently held Palace Exploration UK - 90% and Challenger
              Minerals - 10%. The Quad 14 acreage is subject to a 3% royalty payable
              to
              Walter Oil & Gas UK. 

          

    

    	·  	
            IFR
              and Palace have entered into an agreement under the terms of which
              IFR has
              the right to acquire up to a 40% interest in the Quad 14
              acreage.

          

    

    	·  	
            Palace
              shall seek DTI approval to register the IFR interest in the Quad 14
              acreage on title. 

          

    

    	·  	
            Palace
              and Challenger own a 3-D seismic survey over the Quad 14 acreage. The
              3-D
              survey is owned Palace/Challenger -50% and Encana, now Nexen, 50%.
              The
              cost for IFR to purchase a copy of the 3-D seismic is US$9,000 per
              point.
              

          

    

    	·  	
            Challenger
              has been appointed operator and Challenger will contract ADTI to drill
              the
              first well on the Quad 14 acreage on a turn key basis at an estimated
              D&A cost of USD$10 million. For clarity ADTI will act as drilling
              operator and will drill the test well to contract depth and acquire
              logs
              for an estimated turn key cost of US$10 million.
              

          

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
 

    	·  	
            Palace
              is prepared to participate for up to a 50% interest and Challenger
              will
              participate for 10% of the cost to drill the commitment well on the
              Quad
              14 acreage.

          

    

    	·  	
            Should
              the DTI accept Palace’s request for a traditional license Palace will be
              required to drill one firm well on the Quad 14 acreage within two years
              from the date a traditional license is issued.

          

    

    IFR
      is
      prepared to farmout 15% of the Quad 14 commitment well under the following
      terms
      and conditions;

    

    

    	1.  	
            On
              or before January 5, 2006 EEC shall place US$90,000.00 in an escrow
              account at Tupper Jonsson & Yeadon offices in Vancouver BC. In the
              event EEC completes the farmin transaction contemplated in clause 2
              hereof
              the escrow funds shall be paid to Palace Exploration UK as payment
              for 10%
              of the 3-D seismic costs (US$9,000 X 10).

          

    

    	2.  	
            On
              or before March 3, 2006 EEC shall provide an irrevocable letter of
              credit
              for US$1,500,000.00 in favor of Palace Exploration (UK) Limited in
              trust
              with Tupper Jonsson & Yeadon. This amount represents 15% of the
              estimated turn key dry hole costs of US$10,000,000.00. In the event
              EEC
              does not provide a letter of credit in the amount of US$1,500,000.00
              on or
              before March 3, 2006 the escrow funds of $US90,000.00 referred to in
              clause 1 hereof shall be released from escrow and paid to IFR as a
              non
              performance penalty and EEC shall have no further rights under this
              agreement.

          

    

    	3.  	
            EEC
              agrees to pay 15% of the commitment well D&A turn key costs, estimated
              at US$10 million, 15% of the production testing costs estimated at
              US$1
              million per drill stem test and 15% of all completion and all other
              costs
              incurred to the flow line outlet valve to earn a 10% interest in the
              Quad
              14 acreage. 

          

    

    	4.  	
            EEC
              agrees to pay its 10% share of a 3% GORR payable to Walter Oil & Gas
              UK. 

          

    

    	5.  	
            EEC
              agrees to be bound by the terms and conditions of the IFR - Palace
              farmin
              agreement and Joint Operating Agreement.

          

    

    	6.  	
            EEC
              agrees to pay its 10% share of the annual traditional license fees
              from
              March 3, 2006 onward. 

          

    

    	7.  	
            EEC
              agrees to keep the terms of this letter agreement confidential unless
              required to disclose pursuant to regulatory authorities rules and
              regulations. 

          

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
 

    	8.  	
            EEC
              will provide IFR and Palace with a copy of any public announcement
              prior
              to issuance. 

          

    

    	9.  	
            The
              parties hereto agree to execute any future documentation required,
              including a formal Farmin and Joint Operating Agreement to effect the
              terms and conditions contained herein. 

          

    

    	10.  	
            IFR
              shall use its best efforts to have EEC novated into the Joint Operating
              Agreement.

          

    

    	11.  	
            IFR
              shall use its best efforts to have EEC recognized on title by the DTI,
              in
              the event EEC is not recognized by the DTI then IFR and EEC shall enter
              into a mutually acceptable title Trust Agreement.
              

          

     

    

    This
      offer is open for your acceptance until January 31, 2006 by signing and
      returning a copy of this letter by fax to 403-215-2788. Upon execution of this
      letter agreement the parties hereto agree to enter into a mutually acceptable
      formal agreement incorporating the basic terms and conditions contained herein.
      

    

     

    Yours
      truly, 

    

    

    /s/
      Pat
      Boswell

    

    Pat
      Boswell

    President
      

    

    

    Agreed
      to
      and accepted this 30th day of January 2006

     

    

    

    Per:
      /s/
      Bradley M. Colby______________________

    Eternal
      Energy Corp.

    Brad
      Colby, PresidentFINDER’S
      FEE AGREEMENT

    

    THIS
      AGREEMENT
      is dated
      for reference January 30, 2006

    

     

    
      	
              BETWEEN:

            	
              ETERNAL
                ENERGY CORP.,
                having its registered and records office located at Suite 300, 2120
                West
                Littleton Blvd., Littleton Colorado 80120

            

    

    

    (the
      “Company”)

    

    
      	
              AND:

            	 	 	
              TAVERHAM
                COMPANY LTD.,
                of The Shires, Old Grantham Road, Whatton In The Vale, Nottingham,
                NG13 9FR, United Kingdom

            

    

    

    (the
      “Finder”)

    

    W
      H E R E A S:

    

    A.  
      The
      Company has entered into an agreement with International Frontier Resources
      Corporation (“IFRC”) whereby the Company has agreed to acquire (the
“Acquisition”) a 10% interest (the “Interest”) in a North Sea petroleum
      exploration project consisting of a 255 square kilometre block known as UKCS
      Quad 14, blocks 14/23 (SE/4) 12/28a and 14/29b and a 10% interest in
      UKCS Quads 41 and Quad 42 in consideration of (among other things) payment
      of
      US$90,000 and 15% of the cost of drilling, testing, completing and equipping
      a
      test well, estimated to be US$1,500,000 on Quad 14 and payment of US$75,000
      and
      15% of the cost of drilling, testing, completing and equipping a test well,
      estimated to be US$1,500,000 on Quad 41/42. 

    

    B.  
      The
      Finder was instrumental in introducing the Company to IFRC, and in negotiating
      an agreement between the parties, and as such, the Company has agreed to pay
      to
      the Finder a finder’s fee, payable in shares of the Company, as hereinafter set
      forth;

    

    C.  
      The
      Finder is not an insider or associate of an insider of either the Company or
      IFRC,

    

    THIS
      AGREEMENT WITNESSES
      that in
      consideration of the premises and mutual covenants and agreements herein
      contained the parties agree as follows: 

    

    1.  
      The
      Company hereby agrees to pay to the Finder, in consideration of its services
      in
      enabling the Company to acquire the Interest, a finder’s fee of 350,000 common
      shares of the Company (the “Finder’s Shares”); and the Finder hereby agrees to
      accept the same from the Company in full consideration for such
      services.

    

    2.  
      The
      Finder acknowledges and agrees that the Finder’s Shares will be:

    

    
      	
            	(a)	
              issued
                only upon closing of the Acquisition (and that if closing of the
                Acquisition does not occur, then the Company will have no obligation
                to
                issue the Finder’s Shares);

            

    

    

    
      	
            	(b)	
              subject
                to such resale restrictions as may be imposed by applicable securities
                legislation and regulatory policies;
                and

            

    

     

    
      
         

      

      
         

        
          

        

      

      
        2

      

    

     

    
      

      
        	
              	(c)	
                subject
                  to such escrow restrictions as may be imposed by securities regulators.
                  

              

      

       

    

    3.  
      Any
      notice to be given under this Agreement shall be in writing and shall be
      addressed and delivered personally or mailed to the parties at their addresses
      as first above given or at such other address as may from time to time be
      notified in writing by either of the parties. Any such notice shall be deemed
      to
      have been given on the day delivered or five business days following the date
      of
      mailing.

    

    4.  
      This
      Agreement may not be amended or otherwise modified except by an instrument
      in
      writing signed by both parties. 

    

    5.  
      The
      parties shall execute such further and other documents and instruments and
      do
      such further and other things as may be necessary to implement and carry out
      the
      terms of this Agreement. 

    

    6.  
      This
      Agreement may not be assigned by either party hereto except with the prior
      written consent of the other party hereto. 

    

    7.  
      This
      Agreement will be construed under and governed by the laws of the Province
      of
      Alberta. 

    

    8.  
      This
      Agreement represents the entire agreement between the parties and supersedes
      any
      and all prior agreements and understandings, whether written or oral, between
      the parties. 

    

    9.  
      This
      Agreement shall be binding upon and shall enure to the benefit of the parties
      hereto and their respective successors and permitted assigns. 

    

    10. 
      This
      Agreement may be executed in counterparts, each of which shall be deemed to
      be
      an original and all of which shall constitute one agreement.

    

    IN
      WITNESS WHEREOF
      the
      parties hereto have duly executed this Agreement as of the day and year first
      above written notwithstanding its actual date of execution.

    

    

    ETERNAL
      ENERGY CORP.

    By
      Its
      Authorized Signatory:

    

    

    /s/
      Bradley M. Colby__________________

    

    

    

    TAVERHAM
      COMPANY LTD.

    By
      Its
      Authorized Signatory:

    

    

    ___________________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]