Petrobank Commits to Strong Working Relationship with Upper Similkameen Indian Band

Princeton, B.C. – November 26, 2004: The Upper Similkameen Indian Band (USIB) and Petrobank Energy and Resources Ltd. (Petrobank) are pleased to announce they have signed a Memorandum of Understanding concerning Petrobank’s natural gas from coal development in the Princeton area.

The agreement guarantees that members of USIB will be thoroughly consulted with during each phase of Petrobank’s coalbed gas (CBG) project in Princeton and moreover, that the company will work jointly with the Band and local community to build strong working relationships.

“This agreement is about communication and working together. Petrobank is committed to working closely with all individuals and groups living adjacent to its operations to ensure they are fully informed about our activities,” said Gregg Smith, Vice-President, Canada, Petrobank

Petrobank began drilling an exploratory test well outside of Princeton last Wednesday, November 10, 2004 and expects to complete the well within ten days. Once drilling is concluded, Petrobank will assess the potential of the CBG field and determine if natural gas reserves are sufficient to warrant further development.

“If the project feasibility evaluation shows that a commercial operation is viable, the agreement with the USIB ensures an effective voice with the company leading to potential employment and business opportunities for the Band and the local community,” concluded Chief Richard Holmes of The Upper Similkameen Indian Band.