Contingency

6 Months Ended

Jun. 30, 2012

Contingency

10. Contingency

On January 27, 2011, the Company was delivered a summons indicating that it is being sued in the state of Nevada by Redcor Drilling, Inc. ("Redcor") for non-payment of the balance of a drilling invoice that was under dispute by the Company. Redcor was demanding the Company pay US$241,477 together with interest at the rate of 4% per annum from September 18, 2010. On May 22, 2012, Redcor agreed to dismiss the claim upon receipt of US$181,389 from the Company for drilling services provided.