Giant Gas Opportunities Within Block M-15 CFG’S Offshore Capabilities and Strategy

Giant Gas Opportunities within Block M-15 CFG’s Offshore Capabilities and Strategy

June,2016 Highlights

• Canadian Foresight Group Limited (“CFG”) was established to pursue international E&P opportunities in SE Asia and it has successfully participated in Myanmar’s inaugural offshore bidding round.

• CFG, which is the operator, holds an 80% interest in Myanmar’s offshore Block M-15.

• Myanmar’s offshore oil sector is dominated by the Super-majors and Majors.

• Currently, CFG is the only pure Myanmar offshore investment opportunity available.

• CFG’s best estimate prospective resource is 24 TCF and an independent third-party evaluator Gaffney, Cline & Associates’ best estimate prospective resource is 13.7 TCF of gas with an undiscounted NPV of over USD $20 Billion.

• A 6.5 TCF economic modelling run yielded an undiscounted NPV of about USD $19.7 billion for CFG.

• CFG’s directors and management team have extensive expertise in both onshore and offshore oil/gas exploration and development, particularly in Asia.

Opportunity: Proposed US$100.0 – US$150.0 million financing

2 Board of Directors and Management

Songning Shen is the Chairman and Managing Director of Canadian Foresight Group Limited • Mr. Shen is a Canadian Professional Geologist with 30 years experience in oil & gas industry including national oil companies such as CNOOC, Statoil Norway and EnCana, multinational corporations such as Halliburton, Husky, Occidental Petroleum Corporation and Koch, and emerging public and private companies such as Connacher, Petrolifera, Fern, Sunshine Oilsands Ltd. and CaiTerra International Energy Corporation.

• Two Canadian public companies’ stock had gone up 22-29 times in the span of two years based on Mr. Shen’s exploration and development performance.

• Mr. Shen founded Sunshine Oilsands Ltd. in 2007. The company’s value had increased from CND $220,000 to US $1.7 Billion listed market value. Sunshine Oilsands Ltd. was the biggest IPO in Hong Kong exchange and top 15 biggest IPO in the world in 2012. Petro China, Sinopec Group, Bank of China, China Life Insurance Company Limited are the major investors and owns around 35% outstanding shares.

• Mr. Shen is recognized as being one of the discoverers of China’s biggest offshore oilfield, the SZ36-1 field and he was awarded by the Chinese government.

• The total size of his oil & gas recoverable resource discovery is over 7 billion equivalent barrel. The annual production of all the oil & gas field that he was involved with is over 27 million tonnes.

3 Board of Directors and Management

• Kevin Flaherty - Director - Mr. Flaherty holds a MBA, Finance and resides in Vietnam, where he is a managing director of Energy & Natural Resource Investments at Saigon Asset Management. He co-founded two natural resources firms in Vietnam: Tiberon Minerals and Keeper Resources; both of which were subsequently acquired by Asian-based investment firms.

• Raymond Fong – Director - Mr. Fong is a Canadian Professional Engineer. Mr. Fong was a director of China Coal Corporation from 2007 to 2012. He held previous directorships with Abenteuer Resources Ltd., Stealth Ventures Ltd., Zapata Capital Inc., director and president of Ultra Capital Inc. and a former director of United Rayore Gas Ltd. Mr. Fong is currently serving as a Director for Sunshine Oilsands Ltd. and Palinda International Group.

• Michael Hibberd - Director - Mr. Hibberd holds an LLB and MBA degree. He was a Co-Founder, Co-CEO, Co-Chairman of Sunshine Oilsands Ltd. He held directorships in Heritage Oil Corporation, PanOrient, and Canacol Energy Resources. He was a Senior Vice President of Scotia McCleod Investment division.

• Greg Turnbull - Director - Mr. Turnbull is a lawyer, currently a senior partner at the Calgary office of McCarthy Tétrault LLP. He currently serves as a director of a large number of publicly listed oil and gas E&P companies, including Crescent Point Energy Corp., Storm Exploration Inc., Heritage Oil Corporation, and Marquee Energy Ltd.

4 Board of Directors and Management

• Wei (David) Wu - Director - Mr. Wu has over 30 years of experience as owner and operator of businesses in China. He is a Director of West Pacific Petroleum and Yunnan Tianli Trading Ltd. He has also been a Manager of Husky Energy Challenge Holdings since September 2005. Currently, Mr. Wu serves as the Chairman of the Board of Directors of CaiTerra International Energy Corporation.

• Perla Woo - Vice President - Ms. Woo is Canadian Professional Engineer, with a Master’s degree in Engineering from the University of Calgary. She was a Co-Founder of Sunshine Oilsands Ltd., and was Senior Vice President until September 2008 and has worked at Sunshine until 2014 in capital raise and investor relations. Ms. Woo has over 20 years experience working in the oil and gas industry in Canada in the fields of reservoir engineering, exploitation, and pressure transient analysis.

• Shan Li - Vice President of Finance - Ms. Li has been the Investment Manager of the Strategic Investment Division of the Bank of China Investment Group since 2010 and previously served as the Vice-President of BOCI Asia Limited. She has been involved in numerous IPOs and major M&A transactions.

5 Myanmar 2013 Offshore Bid Round

Offshore Bid Round Results Blocks Selected Candidates Shallow Water Blocks A-4 Woodside & BG Group A-5 Chevron A-7 Woodside & BG Group Oil India & Mercator Petroleum & Oil Imax M-4 Energy M-7 ROC Oil & TAP Oil M-8 Berlanga Holding M-15 CFG Dominated M-17 Reliance Industries M-18 Reliance Industries by the Oil India & Mercator Petroleum & Oil Imax Super- YEB Energy Deep Water Blocks majors and AD-2 Woodside & BG Group AD-3 Ophir Energy Majors AD-5 Woodside & BG Group AD-9 Shell Ad-10 Statoil & ConocoPhillips AD-11 Shell MD-2 ENI MD-4 ENI MD-5 Shell YWB Total

Bid Closed：November 2013 / Results Announced: March,2014 / PSC Signed: March,2015 6 PSC Signing Ceremony – March 30, 2015

• CFG signed the Production Sharing Contract for Block M15 on March 30, 2015. • Ceremony attended by 7 Government Ministers including the Minister of Energy, the Managing Director of MOGE, ambassadors, and over 70 government officials. • Media coverage on Myanmar TV and in Newspaper. • Myanmar views the finalization of the offshore contracts to be a milestone in the country’s development and have pledged full support to CFG and other operators to implement their exploration and development programs.

The Production Sharing Contract (PSC) signing ceremony at Nay Pyi Taw, Myanmar on March 30, 2015

7 Strong Local Partner

• CFG’s 10% local partner on Block M-15 is “Century Bright Gold”, which is a subsidiary of the KMA group (one of Myanmar’s leading commercial firms). • KMA Group is a diversified conglomerate controlling the KMA Hotel Group, CB Bank, CB Insurance, Golden Myanmar Airlines, etc. • KMA Group has solid governmental relationships. • Never appeared on the US or European Union Sanction List. • KMA is carried for all exploration costs on Block M15 up to the Declaration of Commerciality.

8 Myanmar Offshore Block Map

M-15 is located in proven 1） Most of the Myanmar offshore blocks are taken by the oil & gas enriched zone supermajors and majors. 2） M-15 is located in proven oil & gas enriched zone with multiple possible gas fields and prospects.

Myanmar discovered offshore gas fields

Production Comm Gas Res Tech Gas Res IRR Fields Operator Date (BCF) (BCF) (post-tax)

Yadana 1998.8 TOTAL 6,394 128 31% Yetagun 2000.5 P. CARIGALI 3,194 1,040 27% Shwe 2013.7 DAEWOO INT 4,111 2,055 13% Zawtika 2014.3 PTTEP 2,055 900 12% 3-CA-1 n/a TOTAL n/a 25 Shwepyithit n/a CNOOC n/a 40 Aung Sinkha n/a PTTEP n/a 1,200 Pyi Thar n/a MYAN PET RE n/a 35 Shwe Yee Thek n/a PETROVIETNA n/a 200 Total 15,754 5,623

Source: Wood Mackenzie 9 Myanmar Offshore Basins In this Region

M-15 is located in proven oil & gas enriched zone. The production of oil and gas from this zone represents 30% of Myanmar’s total exports.

10 Block M-15 - Oil and Gas Prospectivity

• Water depths on the block drop from 30 meters in the east to about 1600 meters in MULTIPLE TARGETS the west. • Multiple play types are present across the block with multi-TCF prospects.

6 4 3a

1 10 KM

11 CFG’s Resource Evaluation

Prospect Prospect P10 P50 P90 Number Name BCF BCF BCF Deep Water Turbidite 1* 17,323 10,055 5,736 Basin Fan Deepwater Turbidite Lacks 2 N/A Seismic Control 3 Oligocene Horst Block 1,171 645 376 Miocene Sandstone Pinchout – 4* 8,300 3,400 1,100 AVO supported 5 Yetagun – like Basement High 110 75 35

6* Carbonate Buildup 20,406 9,769 4,490 Potential Oligocene Oil – Prone 7 Basins Defined by Satellite N/A Gravity Total 47,310 23,944 11,737 1,420 720 350 ~30b/mmcf Condensate million barrels million barrels million barrels

* Best prospects/leads also evaluated by Gaffney Cline & Associates. 12 Third-Party Resource Evaluation

Gaffney Cline & Associates (GCA) Evaluation Results

• In order to reflect the objectivity of company’s resource and economic evaluation, ensure company’s credibility and minimize investors’ risk, CFG invited GCA to evaluate its three most prospective leads. GCA is a very well-respected international company that specializes in international reservoir appraisal, field development, planning and exploration projects, and ranks top two amongst reserve evaluators in the world. GCA have evaluated and consulted many merger and acquisition projects for CNPC, CPCC, CNOOC and other Chinese oil & gas companies. It also provided evaluation and consultation for numerous Myanmar projects.

• This evaluation was led by GCA’s Singapore branch and completed by geologists, engineers and economists from Singapore and Sydney. The scope of the evaluation work was limited to the west area of Block M-15, where 2D seismic data has been previously acquired covering an area of 1753 square km. Based on the 2D seismic data study, seven (7) leads/prospects have been discovered. CFG and GCA agreed that the evaluation will focus on the three of the best prospects/leads: lead 1, lead 4 and prospect 6.

13 GCA’s Resource Evaluation

Lead/Prospect Lead/Prospect P10 P50 P90 Number Name BCF BCF BCF

Deep Water Turbidite Basin 1 14,633 6,678 1,650 Fan

Miocene Sandstone Pinchout – 4 4,241 1,491 457 AVO supported

6 Carbonate Buildup 10,089 5,540 2,916

28,963 13,709 5,023 Total

Condensate ~ 30b/mmcf 870 million barrels 410 million barrels 150 million barrels

14 Economic Evaluation

CFG and GCA have conducted the economic evaluation of M-15 block independently. Company value increased rapidly after the interpretation of the 2D seismic data. CFG Economic Evaluation GCA Economic Evaluation

GCA’s evaluation is extremely conservative, which shows company’s Based on P50 estimates，CFG’s undiscounted NPV is $20.1 billion US undiscounted NPV is about $70.4 dollars based on P50 estimates. NPV at billion US dollars. 10% discount is $4.2 billion US dollars. CFG economic evaluation shows that Considering risk，GCA’s evaluation also company’s undiscounted NPV is about shows company’s undiscounted EMV is $2.94 billion US dollars with a 1 TCF about $3 billion US dollars. At 10% discovery. discount, the EMV is $588 million US Dollars.

CFG Economic Evaluation: Gas price = US$8.0/MCF GCA Economic Evaluation: Gas price = US$5.5/MCF 15 Collaboration with Shell

• MD-5 block which is owned by Shell is right next to M-15 block.

• There is a big gas field across the border of MD-5 and M-15, which has been confirmed by both companies. Hence, Shell and CFG have signed agreement to Shell CFG exchange data and to acquire 3D seismic data together. The 3D seismic data MD5 M15 acquisition have just been conducted.

• The study of 2D and 3D seismic data provided by Shell has started.

16 PSC Highlights

• Contract area: M-15 • Preparation period: Company has to complete the IEE study within six months after the signing of agreement, and submit the report and plans to MOGE for approval. Minimum expenditure is US$250,000. • Data fee: US$350,000. • Data study period: 6 - 12 months; Minimum expenditure: US$1 M. Then move to exploration period after the payment of signing bonus. • Signing bonus: US$5.1 M. • Exploration period: 3 years • First year: Seismic acquisition, process, interpretation. Minimum expenditure: US$20 M. • Second year: drill at least one well, costs is about US$25 M. • Third year: publish drilled well information and drill another well, costs is about US$25 M. • To summarize, at least two wells must have been drilled within the three-year exploration period at total expenditure of about US$70 M. • There are two extensions for the exploration period. The first extension is two years and the fourth year can be the study year. Minimum expenditure is US$4 M. Drill another well in fifth year, minimum expenditure is US$25 M. • Company will move into production any time once there is a commercial discovery in the first 6 years. • Production: 20 years or the sales agreement duration, whichever is longer. • Royalty: 12.5%

17 PSC Highlights

18 Economic Model

Based on CFG and GCA’s evaluation results, there is high likelihood that CFG will be able to find 2-3 world class giant gas fields in block M-15. Using real production and operation costs from current Myanmar offshore gas fields, and considering current gas price and the construction costs of offshore pipeline to Kanbauk, a 6.5 TCF economic model was built based on the Production Sharing Contract (PSC) with the Myanmar government.

The economic model shows that CFG’s undiscounted NPV is USD $19.7 Billion with the assumed gas price equal to 60% of current market gas price in Myanmar.

19 M-15 Shallow Water-6.5 TCF Model Economic Evaluation

Price Discount Sharing Ratio Royalty Production

Gas Price Percentage of Maximum GAS Price $5.50 Inflation 3% Gas for Cost 50% Gas Royalty 12.50% Production per 25 US$/MCF Rate Recovery Well MMCF/D

Condensate Percentage of Condensate Peak Price Condensate Condensate Price $35 3% 50% 12.50% Production 1000 Inflation for Cost Royalty US$/bbl MMCF/D Parameters Rate Recovery Number of Wells to Income 0% Support Peak 40 Discount Rate Production MMCF/D

Cost Inflation 3% Rate

Conclusions Undiscounted NPV：US$19.7 Billion IRR：21%

20 6.5 TCF Model Cash Flow & Dividend at Start of Production

YEAR 1 2 3 4 5 6 7 8 9 10 Cash Flow -335.80 111.12 192.37 318.52 514.06 816.82 1018.21 923.53 951.23 979.77 （MMUS$） Total Dividend 0.00 105.56 182.75 302.59 488.35 775.98 967.30 877.35 903.67 930.78 （MMUS$） Total Number of Shares 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 （100 Million ） Dividend / Share 0.00 0.23 0.41 0.67 1.09 1.72 2.15 1.95 2.01 2.07 （US$） YEAR 11 12 13 14 15 16 17 18 19 20 Cash Flow 1009.16 1039.44 1070.62 1102.74 1135.82 1098.43 1057.77 1013.68 965.99 914.53 （MMUS$） Total Dividend 958.71 987.47 1017.09 1047.60 1079.03 1043.51 1004.88 962.99 917.69 868.80 （MMUS$） Total Number of Shares 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 （100 Million ） Dividend / Share 2.13 2.19 2.26 2.33 2.40 2.32 2.23 2.14 2.04 1.93 （US$） YEAR 21 22 23 24 25 26 27 28 29 30 Cash Flow 859.11 799.55 735.64 667.17 593.93 515.70 432.24 343.31 248.65 148.01 （MMUS$） Total Dividend 816.16 759.57 698.85 633.81 564.24 489.92 410.63 326.14 236.22 140.61 （MMUS$） Total Number of Shares 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 4.50 （100 Million ） Dividend / Share 1.81 1.69 1.55 1.41 1.25 1.09 0.91 0.72 0.52 0.31 （US$） Total Dividend per Share：US$45.55

21 M-15 6.5 TCF Model Cash Flow

1500

1000

500

MM US$ MM 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Operation Year -500

-1000

Gas price: US$5.5/MCF Condensate price: $35/bbl

22 6.5 TCF Model Dividend at the Start of Production

2.5

1.5 US$

0.5

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Production Year

Gas price: US$5.5/MCF Condensate price: $35/bbl 23 M-15 6.5 TCF Model Sensitivity Analysis

Condensate Gas NPV NPV NPV NPV NPV IRR Price Price (MMUS$) (MMUS$) (MMUS$) (MMUS$) (MMUS$) % (Income discount 0% (Income discount 5% (Income discount 8% (Income discount 10% (Income discount 12% （US$/BBL）（US$/MCF） Cost discount 3%) Cost discount 3%) Cost discount 3%) Cost discount 3%) Cost discount 3%)

55 8.0 25 29,489 10,539 5,901 4,036 2,758 35 5.5 21 19,662 6,826 3,688 2,430 1,572 25 1.4 10 5,178 1,295 362 0 （236） 25 2.0 12 7,199 2,080 840 353 353 25 3.0 15 10,555 3,369 1,619 924 455 25 4.0 18 13,910 4,646 2,385 1,482 869 25 5.0 20 17,266 5,920 3,148 2,038 1,281 25 6.0 21 20,621 7,189 3,905 2,588 1,688 25 7.0 23 23,977 8,458 4,662 3,138 2,095 25 8.0 24 27,332 9,726 5,418 3,687 2,500 25 9.0 26 30,687 10,991 6,170 4,231 2,902 25 10.0 27 34,043 12,255 6,922 4,776 3,304 35 1.2 10 5,183 1,296 362 0 （237） 35 2.0 13 7,918 2,358 1,009 477 121 35 3.0 16 11,274 3,642 1,783 1,043 544 35 4.0 18 14,629 4,919 2,548 1,601 958 35 5.0 20 17,985 6,192 3,310 2,155 1,368 35 6.0 22 21,340 7,461 4,067 2,705 1,775 35 7.0 23 24,696 8,730 4,824 3,256 2,182 35 8.0 25 28,051 9,997 5,579 3,803 2,586 35 9.0 26 31,407 11,262 6,331 4,348 2,988 35 10.0 27 34,762 12,526 7,083 4,893 3,389 24 Gas Price/Income Discount vs NPV

Gas Price vs Undiscounted NPV Income Discount vs NPV

NPV (B US$) NPV (B US$)

$10 34.8 0% 19.7 US$ $8 28.1 / 5% 6.8 MCF $6 21.3 8% 3.7

$5.50 19.7 10% 2.4

$4 14.6 12% 1.6

$2 7.9

25 The Importance of Gas Sales and the Sales Agreement

• In Asia, natural gas is still a scarce bulk commodity. The big consumers of natural gas in Asia are China, Japan, Korea, Thailand, India and Malaysia, which are all close to Myanmar or with connected offshore area . In the past ten years, China's energy strategy and the main focus were coal and petroleum. Energy-related issues, such as air pollution and energy inefficiency, become an increasingly serious issue, which has forced China to seek other energy source. Natural gas has been identified as an alternative to coal, being an attractive and clean source of energy.

• According to PSC agreement, 75% of M-15’s future production can be exported directly. 25% of the M-15 future production has to be sold within Myanmar as its domestic demand is increasing greatly. Majority of Myanmar gas production is currently supplied cross-border to Thailand and China. There is a forecasted steep increase of demand from regional countries in Asia such as China, Thailand and India. Therefore, the gas market for CFG’s gas find is assured.

• According to PSC agreement, the production period is the longer of 20 years or sales agreement duration, so we have started looking for strong sales partners.

26 Sales Strategy

Pipeline Strategy: • CFG will transport gas through pipelines to buyers. The pipelines can be constructed by CFG only or with partners. • Based on gas productivity, an 80 km pipeline can be constructed to connect to Yetagun gas field located north of M-15 block. Then gas will be transported through Yetagun to Kanbauk. Alternatively, a 220 km pipeline can be constructed directly to Kanbauk. Then gas will be transported from Kanbauk to Sino-Myanmar pipeline or Thailand pipeline. LNG Strategy: • CFG also considers installing LNG facilities on the production platform as such technology is very matured. Then LNG will be shipped to China, Japan and Korea. • Floating LNG gas storage is another possibility.

27 M-15 is located in proven oil & gas enriched zone

Kunming Nanning

Sino-Myanmar • Based on GCA’s conservative Gas Pipeline evaluation, M-15’s prospective resources can supply Sino- Myanmar gas pipeline for over 40 years at full capacity.

• It is only 220 km between the

furthest point of M-15 block to Kanbauk Kanbauk.

28 CFG Commercial Operation Phases

1. M-15 block bidding phase, 09. 2012 – 04. 2014, completed. 2. M-15 block PSC negotiation and signing phase, 05. 2014 – 03. 2015, completed. 3. M-15 block early stage interpretation, third party reserve & economic evaluation, IEE phase, 04. 2015 – 12. 2015, completed. 4. Seismic acquisition with Shell for the joint border about 1500 sq. km, 11. 2015 – 10. 2016, acquisition is completed, processing and interpretation is in the progress, the first well location will be decided in 08. 2016 – 10. 2016. 5. M-15 block 3D seismic tendering & evaluation and 3D acquisition, processing, and interpretation, 11. 2015 – 02. 2017, in progress. 6. First exploration well, 01. 2017 – 03. 2017 or 10. 2017 – 12. 2017. The second and third exploration wells, 10. 2017 – 05. 2018. It will enter production preparation phase once the exploration well discovers gas. 7. Production preparation phase includes: third party reserve evaluation report, development plan, well location determination, platform design, underwater production facilities design and construction, pipeline design and construction, 04. 2017 – 12. 2020. 8. Production phase, start to sell gas and condensate to down stream, around 01. 2021.

29 Milestones

Production Platform

Drill

3D Seismic Company Value Company

Tender

IEE PSC Signed

03. 2015 06. 2015 11. 2015 2016 2017 ……… 2019-2021 Year 30 The Demands and the Sources of Funds

The demands of funds: The demands of funds are in phases 4 to 7. • Before the production preparation phase: in order to complete phases 4 – 7, US $130 M is needed. • In production preparation phase: US$1.2 – 1.5 billion is needed to complete phases 7 – 8.

The sources of funds: • For the funds needed before production preparation, CFG prefers equity financing. According to GCA’s evaluation, company’s current undiscounted EMV is US $3 billion. Company’s current market value is US $150 M if the share price is US $1.0, which is 5% of the evaluation. 3D seismic acquisition, processing, interpretation phases (4 -5) need US $30 M. Drilling phase needs US $100 M (If the first well is successful, only US $33 M is needed). • Once it is in production preparation phase, resource can be used as collateral for loans, part or all of the funds could come from loans.

31 Huge Rewards if CFG Investment is done now

Dividend and Investment Exit: As GCA’s reserve and economic evaluation has determined that the gas resource is 13.7 TCF and undiscounted EMV is US$3 billion, there is low economic risk at the share price of US$1.0.

• Company could partly or fully sell the interests of M-15 block now and pay dividend to shareholders. • For the investors who expect to become controlling shareholders, company could not only issue new shares but also transfer existing shares to them based on a reasonable exchange ratio and share price. • Company is seeking opportunities in Singapore, Hong Kong or Mainland China to go public.

Based on current gas market price and M-15 block resource, we confidently estimate that the share price will go up 3-5 times within 2 years and increase more than 10 time once in production.

32 Corporate Structure

• Canadian Foresight Group Limited and CANADIAN FORESIGHT GROUP LIMITED its wholly owned subsidiary CFG Energy Pte. Ltd. are Singapore incorporated 100% companies. CFG ENERGY PTE. LTD. • Shares issued and outstanding:

149,951,655. 100% • Capital raising: Planning to raise CFG ENERGY PTE. LTD. US$100 - 150 million by 2016. (MYANMAR BRANCH)

33 Budget for 2016 - 2017（US$）

• Company G&A - $1.2M • October 2016 – Seismic Acquisition $20M • November 2016 – EIA - $250K • February 2017 – Drill First Well - $25M

34 Risk Analysis

Investors’ concern of the risk are mainly in three areas: 1. Exploration risk: there is only 2D seismic data and one well data available and appears as though it is high risk. However, because the leads and prospects are huge, the 2D data can provide basic information about the three leads or prospect’s seismic profiles that will ultimately lead to successful exploration. 2. Political risk: the Myanmar political stability is critical to this project. Historically, there was never any breach by the Myanmar government of any oil & gas agreements they had signed with any energy company. Each government followed and honored agreements strictly. Currently, a democratically elected Myanmar government is in power and there is marked improvement in the transparency of the government in the past few years. In addition, CFG is a Singaporean registered company, with a partner which is an Australian company and a local partner, KMA which plays a big role in Myanmar’s economy. The close and strong relationship between KMA and Myanmar government is another assurance of the project’s success. 3. Future gas price: based on current facility limitation, there is a false appearance of “Supply is bigger than demand” in China. However, looking closely at gas generated power by volume: China’s gas consumption needs to increase 10 times in order to achieve the average power generated from gas by other countries in the world. Because of severe air pollution, China’s reliance on coal-generated power will decrease and its demand for gas will increase which will then ensure higher gas prices. A more conservative gas price of US$5.5/mcf was used in the economic model to reflect prevailing market sentiment although the current market price is higher at US$8.0 - 9.0/mcf. Even using a very low estimate of US$2/mcf gas price, sensitivity analysis shows that the company’s undiscounted NPV is still very attractive at almost US$8 billion.

35 Huge Future with “BELT & ROAD” Program in China

• If CFG adhere to the schedule and everything progresses accordingly as planned, M15 block will start the production of natural gas after 2021. The company is seeking strong partners with related businesses in natural gas exploration, development, investment, production and sales.

• CFG M-15 block, located in the shallow waters of the Myanmar gas field area, would become one of China's largest clean energy projects, if Chinese enterprises participate. It will supply clean energy for the south-west provinces in China and make huge contribution to improvement of air quality.

36 Appendix

Technical Information

37 The Kitchen

Volume of Gas Generated per Square Kilometer showing Prospect Outlines

• Basin Modelling demonstrates that the rich Oligocene source rock kitchen on the western part of Block M-15 has generated 80 – 100 BCF per square. kilometer, more than sufficient to source the multi-TCF traps on Block M-15.

• Deep water prospects directly overlie source kitchen areas, in shelf areas, migration pathways lead directly to prospect locations.

38 Lead 1 – Deep Water Turbidite Fan Complex

Estimated P50 prospective resources likely significantly higher than the discovered deep water turbidite fan gas field – Shwe/Shwe Phyu gas field

• Turbidite Fan Complexes are the “Play of the Decade” and have spurred the MD5 Block M-15 Block participation of majors and super-majors in Myanmar Offshore. Shell CFG • Multi-TCF fields are likely. • Block M-15 Turbidite Fan Complexes extend onto the adjacent block held by Shell. • Estimated P50 prospective resources is 6.7 TCF，nearly twice the Shwe/Shwe Phyu gas field.

Water Depth: ~1700m B Prospect Depth: ~3500m Estimated Porosity：26~30%

Line space 4 km Fan Complex

2 KM

39 Lead1 - Seismic Section (North)

A B

Area：264 SQKM Average Thickness: 152m Depth: ~3500m MD5 Block M-15 Block Estimated Porosity：26-30% Shell CFG A

Fan Complex

Line space 4 km

40 Lead1- Seismic Section (South)

A B Area：264 SQKM Average Thickness: 152m Depth: ~3500m Estimated Porosity：26-30% MD5 Block M-15 Block Shell CFG

Fan Complex A B Line space 4 km 2公里

41 Prospect 6 - Carbonate Buildup

Analogous to the biggest carbonate gas field in Myanmar – Yadana Field

• Large carbonate buildup is analogous to the Isopach of Buildup (CI=20m) biggest carbonate gas field in Myanmar - Yadana field, with very similar geological settings and seismic features.

• Cross-cutting channels are apparent, separating the down-dip areas characterized by flat-zones from the updip portion tested by the well M15- B1.

• Very high porosity and permeability is expected with attendant high estimated P50 recoverable Big Channel resources of 5.5 TCF.

42 Prospect 6 - Carbonate Buildup East to West Profile 1

A B

Flat Zone：Most reliable indicator of Gas Deposit

43 Prospect 6 - Carbonate Buildup East to West Profile 2

B A

A Flat Zone：Most reliable indicator of Gas Deposit

2公里

44 Prospect 6 - Carbonate Buildup South to North Profile

Analogous to the biggest carbonate gas field in Myanmar – Yadana Field

North Water depth: ~280m Top carbonate depth: ~1080m Estimated Porosity：25-30%

Bright spots

Seal: Mid-Miocene clay dominant shale South

Flat Zone Source: Ample Oligocene source rock

10km Volcanic basement

South North

45 Yadana gas field

Large carbonate buildup on Block M-15 is analogous to the biggest carbonate gas field in Myanmar - Yadana field in the same region, with very similar geological settings and seismic features.

Water depth: 32-45M Top carbonate depth: ~1200M Recoverable resource: ~6.5 TCF Porosity: 27-31% Permeability: ~50-300 MD

Bright Spots

Seal: Mid-Miocene Clay dominant Shale

Source: ample Oligocene source rock

Volcanic basement

46 Lead 4 - Miocene Pinchout – AVO supported

AVO amplitudes showing interpreted gas-charged area with seismic profile

• Miocene sandstones are truncated adjacent to a large shelf-bounding fault.

• A prominent AVO (Amplitude vs Offset) A B anomaly suggests that the sandstone package is gas-charged.

• Estimated P50 gas resources of 1.5 TCF.

• Stacked sands may increase prospective A B resources significantly.

47 Lead 4 – Intra Mid-Miocene Depth and Amplitude Map

48 Lead 4 – Seismic Section

A B

Lead 4

Prospect

2公里

49 Reader Advisories

The information in this presentation contains certain forward-looking statements. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", “plan", "continue", "estimate", "demonstrate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", “could", "might", "should", "believe", "would" and similar expressions and include statements relating to, among other things, the anticipated ongoing strategy of Canadian Foresight Group Limited (CFG) and CFG Energy Pte. Ltd. and development, drilling and acquisition opportunities and plans for CFG and the anticipated performance of CFG’s properties. Such forward-looking statements or information is provided for the purpose of providing information about the current expectations and plans relating to CFG and its current and future oil and gas assets (the “CFG Assets"). Readers are cautioned that such information may not be appropriate for other purposes, including making investment decisions. In particular, this document contains forward looking statements pertaining to: CFG’s corporate areas of focus; CFG’s capital raising plans; CFG’s operational and development plans and the timing thereof; the quality and characteristics of the CFG’ Assets; expected performance in 2016 and beyond; the anticipated performance of the properties to be explored and developed and the timing of certain matters related thereto; CFG’s capital budget requirements; the proposed fundraising, the price per share, the use of proceeds for such offering, the levels of participation of insiders in such offering and the timing of certain matters related thereto; the expected operational plans, including preparation, exploration, drilling and optimization activities, and the anticipated results therefrom; expected capital cost reductions; and matters ancillary or related to the foregoing list. In addition, please note that information relating to estimated resource and resources are deemed to be forward-looking information, as it involves the implied assessment, based on certain estimates and assumptions that the resource described can be economically produced in the future. The forward looking statements in this presentation are based on certain assumptions, including, without limitation: the quantity of resource and resources associated with the CFG Assets; the oil and natural gas production levels of the CFG Assets; the quality and characteristics of the CFG Assets; the source of funding for CFG’s activities including development costs; development and drilling plans for those CFG Assets and the timing of results thereof; projections of commodity prices and costs; supply and demand for oil; potential resource and future production with respect to the CFG Assets, business strategy and objectives; exploration and drilling plans; the costs associated with and the timing in relation to drilling wells; the costs of leases; capital expenditures; operating and other costs; the timing of implementing certain operating techniques; royalty rates and taxes; expectations regarding the ability to raise capital and continually add to resource through acquisition and development; the sources of and the uses of cash generated from the business of CFG ; and the treatment under governmental regulatory regimes, including with its quasi- governmental partner, MOGE. Readers are cautioned such assumptions, although considered reasonable at the time of preparation of the information in this presentation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

50 Reader Advisories

CFG’s actual results, performance or achievement could differ materially from those expressed in or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits CFG will derive there from. These statements involve substantial known and unknown risks and uncertainties, certain of which are beyond CFG’s control, including: the impact of general economic conditions; industry conditions; changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; fluctuations in commodity prices and foreign exchange and interest rates; stock market volatility and market valuations; liabilities inherent in oil and natural gas operations; uncertainties associated with estimating oil and natural gas resource; competition for, among other things, capital, acquisitions of resource, undeveloped lands and skilled personnel; incorrect assessments of the value of acquisitions; changes in income tax laws or changes in tax laws and incentive programs relating to the oil and gas industry; geological, technical, drilling and processing problems and other difficulties in producing petroleum resource; ability to secure drilling and service equipment; and obtaining required approvals of regulatory authorities. CFG’s actual decisions, activities, results, performance or achievement could differ materially from those expressed in, or implied by, such forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward- looking statements will transpire or occur or, if any of them do, what benefits that CFG will derive from them. Readers should be cautioned that the foregoing list is not exhaustive of all possible risks and uncertainties. These risk factors should not be construed as exhaustive. Any financial outlook or future oriented financial information in this presentation, as defined by applicable securities legislation, has been approved by management of CFG. Such financial outlook or future oriented financial information is provided for the purpose of providing information about management's reasonable expectations as to the anticipated results of its proposed business activities. Management of CFG believe that the expectations reflected in the forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included herein should not be unduly relied upon. These statements speak as of the date hereof. Except as required by law, CFG undertakes no obligation to publicly update or revise any forward-looking statements. The information contained in this presentation does not purport to be all inclusive or to contain all information that prospective investors may require. Prospective investors are encouraged to conduct their own analysis and reviews of CFG and the information contained in this presentation. Information in relation to the previous experience of CFG’s management is not indicative of the future performance characteristics of CFG. Without limitation, prospective investors should consider the advice of their financial, legal, accounting, tax and other advisors and such other factors they consider in investigating and analyzing CFG.

51 Contact Information

SONGNING SHEN CANADIAN FORESIGHT GROUP LIMITED Chairman of the Board and Managing Director Canadian Foresight Group Limited Calgary Office: Suite 800, 717 7th Avenue SW, Calgary, AB T2P 0Z3, Canada Mobile: +1 403 875 2129 Office: +1 587 353 3711 Office: +1 587 353 3711 ext. 1120 Fax: +1 403 452 0907 Email: [email protected] Yangon Office: PERLA WOO Rm. No.16, 3rd Fl., Build. No.C2, Shwe Hin Thar Condo, Vice President Corner of Pyay Road & Shwe Hin Thar Street, Hlaing Tsp., Canadian Foresight Group Limited Yangon, Myanmar Office: +959 781 879 396 Mobile: +1 403 827 6328 Fax: +959 781 879 396 Office: +1 587 353 3711 ext. 1121 Email: [email protected] www.canadianforesight.com