Unconventional Natural Gas A Compelling Case A Focused

Unconventional Natural Gas A Compelling Case. A Focused Vision. October 2006 TSX VENTURE: SPI

Disclosure Statement The corporate information contained in this presentation contains forward-looking forecast information. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonably accurate by Canadian Spirit Resources Inc. (CSRi) at the time of preparation, may prove to be incorrect. The actual results achieved during the forecast period will vary from the information provided herein and the variations may be material. Consequently, there is no representation by CSRi that actual results achieved during the forecast period will be the same in whole or in part as those forecast. SPI

Who We Are § A junior public exploration and development company focused on unconventional natural gas § Seasoned management team with expertise in unconventional natural gas development § Operations focused on Farrell Creek area of northeast B. C. § Farrell Creek resource estimated at over 1 tcf on the company’s 40, 000 acres of land § Currently in pre-production stage with production and cash flow generation expected in Q 3 2007 SPI

CSRi at a Glance Shares outstanding 28. 8 million Listing TSX Venture: SPI Recent share price $1. 92 Market capitalization $55 million Management and Directors 2. 5% Institutional shareholders 22. 5% Largest shareholder (As at September 15, 2006) SPI Sprott Asset Management (18. 8%)

CSRi at a Glance Total land holdings 40, 000 acres (62 sections) Contingent resource* Gething coals 12 – 16 bcf/section Gething shales 11 – 17 bcf/section Total contingent resource 1. 4 – 2. 0 tcf Market cap / recoverable mcf $0. 06 per mcf Calculated on average contingent resource of 1. 6 tcf at an estimated 60% recovery rate. *(Sproule Associates, April 17, 2006, Gething Formation only at Farrell Creek, B. C. ) SPI

Unconventional Natural Gas § Unconventional natural gas includes natural gas from coal, shale gas, as well as gas from tight sands § Typically large, long-life resource § Unconventional natural gas is a rapidly growing sector in North America’s energy industry § Significant production in the U. S. , 10 years ahead of Canada SPI

Conventional vs. Unconventional Gas § Can evaluate with well logs § Immediate gas flow to well bore § Needs specialized lab tests on cores § Gas diffuses slowly to fractures § May fracture to stimulate § Always fracture to stimulate § Inorganic reservoir rock gas has migrated to reservoir trap § Organic reservoir rock is its own source rock § Permeability not depth dependant § Permeability decreases with depth § Few wells to develop § Multiple wells and facilities § Water/gas ratio increases § Water/gas ratio decreases § Reserve determination follows established guidelines § Requires production testing to demonstrate reserves Source: Modified from AJM Petroleum Consultants SPI

Substantial Resource Play Fort St. John Total unconventional gas potential in British Columbia is estimated at 90 tcf, of which 60 tcf is located in the Peace River Coalfield (shown in dark blue on locator map) where CSRi’s Farrell Creek property is located. SPI

Focused Approach Land 62 sections Working Interest 94% average Deep Rights on over 80% of land SPI

Farrell Creek, NE B. C. Land 62 sections Well Spacing 4 – 8 wells per section Potential Well Locations 200 – 500 Productivity per Well 250 – 300 mcf/d Total Potential Production 50 – 150 mmcf/d SPI

Resource Report Sproule Associates Limited Preliminary Report April 17, 2006: Farrell Creek Gething Formation Contingent gas-in-place resource potential Coals 12 – 16 bcf per section Shales 11 – 17 bcf per section Total contingent resources SPI 1. 4 – 2. 0 tcf

Farrell Creek Geology Average depth to top of Cadomin is 900 m SPI

Farrell Creek Gething Formation Coal § Multiple thin seams § As many as 30 individual seams § Net coal thickness: average 25 – 50 feet § Gas content: 230 – 550 scf/ton Shale § Rich in organics § Interbedded with coal § Represents 50 – 65% of the formation § Gas content: 12 – 58 scf per ton SPI

Staged Approach Typical Stages of an Unconventional Gas Program CSRi Today Source: Modified from Lamarre Geological SPI

Accomplishments to Date § Drilling Program has: Confirmed resource parameters Confirmed geological and resource consistency Generated data for resource assessment § Demonstrated productive repeatability § Commenced production testing – three wells flaring § Commenced preliminary facility design and pipeline hot-tap application SPI

Financial Summary 2004 2005 June 2006 Cash & term deposits $6. 0 $10. 7 $3. 3 Shareholders’ equity $18. 8 $29. 0 $28. 6 $0. 074 $0. 499 $0. 569 Net income ($1. 742) ($3. 806) ($2. 911) Cash flow ($0. 528) ($0. 468) ($0. 564) ($ millions) Revenue Net income/share SPI ($0. 09) ($0. 15) ($0. 11)

2006 Capital Program ($ millions) June 2006 Exploration $9. 7 Land $0. 1 Capitalized G&A $0. 6 $10. 4 Estimated expenditures to September 30 $7. 9 Estimated fourth quarter capital $2. 5 Estimated net cash position September 30 $6. 0 Ongoing net monthly G&A costs SPI $90, 000

Risks § Production rate per well § Well density and recovery factor § Equipment and service costs § Natural gas prices SPI

CSRi – Unique Strengths § Significant resource: 1. 4 – 2. 0 tcf (Gething only) § High working interest land position: 40, 000 acres § Multiple prospective targets § Resource knowledge and expertise of technical team § Ready access to infrastructure and pipeline § Advancing towards development phase of resource SPI

Creating Shareholder Value Balanced Approach. Focused Vision.

Canadian Spirit Resources Inc. Suite 1950, Ford Tower 633 6 th Avenue S. W. Calgary, Alberta T 2 P 2 Y 5 Telephone (403) 539 -5005 E-mail: info@csri. ca TSX Venture: SPI www. csri. ca SPI