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    <div>&#160;</div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman"><strong>UNITED
        STATES</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
        AND EXCHANGE COMMISSION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Washington,
        DC 20549</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman"><strong>FORM
        8-K</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
        REPORT</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Pursuant
        to Section 13 or 15(d) of the Securities Exchange Act of
        1934</strong></font><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    </div>
    <div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
        of
        Report (Date of earliest event reported) </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>November
        4, 2005</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman"><strong>ETERNAL
        ENERGY CORP.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
        <div>
          <hr style="COLOR: #000000" align="left" noshade size="2" width="100%">
        </div>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
        name of registrant as specified in its chapter)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
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        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Nevada</strong></font></div>
              </td>
              <td valign="top" width="29%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>0-50906</strong></font></div>
              </td>
              <td valign="top" width="29%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>20-0237026</strong></font></div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="29%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(State
                  or other jurisdiction </font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">of
                  incorporation)</font></div>
              </td>
              <td valign="top" width="29%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Commission
                  </font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">File
                  Number)</font></div>
              </td>
              <td valign="top" width="29%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(IRS
                  Employer </font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Identification
                  No.)</font></div>
              </td>
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              <td valign="top" width="85%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2120
                  West Littleton Blvd., Suite 300 </strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Littleton,
                  Colorado 80120</strong></font></div>
              </td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Address
                  of principal executive offices) (Zip
                  Code)</font></div>
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        </table>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registrant&#8217;s
        telephone number, including area code: </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(303)
        385-1230</strong></font><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
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              <td valign="top" width="85%" style="BORDER-BOTTOM: black thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Golden
                  Hope Resources Corp.</strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>1155
                  W. Pender Street, Suite 708 </strong></font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Vancouver,
                  B.C., Canada V6E 2P4</strong></font></div>
              </td>
            </tr>
            <tr>
              <td valign="top" width="85%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Former
                  name or former address, if changed since last
                  report)</font></div>
              </td>
            </tr>

        </table>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Check
        the
        appropriate box below if the Form 8-K filing is intended to simultaneously
        satisfy the filing obligation of the registrant under any of the following
        provisions:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings 2"><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o</font></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Written
        communications pursuant to Rule 425 under the Securities Act (17 CFR
        230.425)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings 2"><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o</font></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Soliciting
        material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
        240.14a-12)</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: NelcoSymbols, Wingdings 2, serif"><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o</font></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
        communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
        240.14d-2(b))</font></div>
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      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: NelcoSymbols, Wingdings 2, serif"><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o</font></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pre-commencement
        communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
        240.13e-4(c))</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div><br>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
        1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ITEM
        2.01 COMPLETION OF ACQUISITION OR DISPOSITION OF ASSETS.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        November 7, 2005, Golden Hope Resources Corp., a Nevada corporation (the
        &#8220;Company&#8221;), and Eternal Energy Corp., a Nevada corporation and a newly formed
        merger subsidiary wholly owned by the Company (&#8220;Merger Sub&#8221;), consummated a
        merger transaction (the &#8220;Merger&#8221;) whereby Merger Sub merged into the Company,
        with the Company as the surviving corporation. The Company and Merger Sub
        filed
        the Articles of Merger, which had an effective date of November 7, 2005,
        with
        the Secretary of State of Nevada, along with the Agreement and Plan of Merger
        entered into by the two parties effective as of November 7, 2005 (the &#8220;Merger
        Agreement&#8221;). The Merger Agreement and the Articles of Merger provided for an
        amendment of the Company&#8217;s Articles of Incorporation, which changed the
        Company&#8217;s name to &#8220;Eternal Energy Corp.&#8221; effective as of November 7, 2005. A
        copy of the Merger Agreement is attached as Exhibit 10.1 and a copy of the
        Articles of Merger is attached as Exhibit 3(i).3, and both are incorporated
        herein by reference.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        a
        result of the Merger, the Company acquired all of the contractual rights
        and
        interests, and assumed all of the liabilities, of Merger Sub with respect
        to a
        Purchase and Sale Agreement (the &#8220;Purchase Agreement&#8221;). Effective November 7,
        2005, Merger Sub entered into the Purchase Agreement with Merganser Limited,
        whereby Merganser sold and Merger Sub purchased all of the rights, title
        and
        interest of Merganser under a Participation Agreement dated November 1, 2005
        (the &#8220;Participation Agreement&#8221;), by and between Eden Energy Corp., a Nevada
        corporation, and Merganser. The Participation Agreement sets forth participation
        rights between Merganser and Eden, with respect to a joint venture between
        Eden
        and Cedar Strat Corporation, a Nevada corporation, for acquiring oil and
        gas
        leases and drilling wells to explore for oil and natural gas reserves on
        the Big
        Sand Spring Valley Prospect, located in Nye County, Nevada (the &#8220;Project&#8221;). As
        consideration, Merger Sub agreed to issue to Merganser 1,000,000 shares of
        the
        Company&#8217;s common stock for each 10,000,000 equivalent barrels of net proved oil
        reserves, in any calendar year, attributable to Merger Sub&#8217;s interests in the
        Participation Agreement. In the event that the Company&#8217;s proved reserves for any
        calendar year are less than 10,000,000 equivalent barrels of oil, Merganser
        would not be entitled to any shares of common stock for that year. In each
        succeeding calendar year, Merganser will be entitled to receive additional
        shares for any new reserve additions to the Company&#8217;s reserve report for that
        calendar year, payable at the same formula described above.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
        to the Participation Agreement, Merganser has the right to acquire 50% of
        all of
        the interests that Eden has in the Project. The initial consideration payable
        to
        Eden for such rights is $2,667,000. Under the Participation Agreement, after
        the
        initial consideration is fully paid, all subsequent costs are to be borne
        50% by
        Eden and 50% by Merganser, and ownership of the oil leases and additional
        acreage will be owned 50% by Eden and 50% by Merganser. The parties agreed
        that
        the operation of the Project will be governed by the AAPL Form 610-1989 Model
        Form Operating Agreement, with Eden named as the operator. The Participation
        Agreement has a term of 10 years, and upon the expiration of the Participation
        Agreement, each prospect will be operated in accordance with the operating
        agreement covering any oil and gas leases acquired under the Participation
        Agreement. As a result of the Purchase Agreement and the Merger discussed
        above,
        the Company has acquired all of Merganser&#8217;s rights under the Participation
        Agreement.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
        copy of
        the Purchase Agreement, which exhibits include the Participation Agreement
        and
        the AAPL Form 610-1989 Model Form Operating Agreement, is attached as Exhibit
        10.2 and is incorporated herein by reference.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        disclosure regarding the Private Placement (as that term is defined in Item
        3.02) in Item 3.02 with respect to the Subscription Agreements, Common Stock
        Purchase Warrants and the Registration Rights Agreement are incorporated
        herein
        by reference.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
        copy of
        the Company&#8217;s press release announcing the above described transactions and
        events is attached as Exhibit 99.1 and is incorporated herein by
        reference.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Disclosure
        pursuant to Item 2.01 (f) follows:</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Forward-Looking
        Statements </em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>This
        report contains forward-looking statements that involve risks and uncertainties.
        Our actual results may differ materially from those discussed due to factors
        such as, among others, limited operating history, difficulty in developing,
        exploiting and protecting proprietary technologies, intense competition and
        substantial regulation in the oil and gas industry. Additional information
        concerning factors that could cause or contribute to such differences can
        be
        found in the following discussion, including the &#8220;Risks Factors&#8221; section
        below.</em></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Description
        of Business</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Overview</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Golden
        Hope Resources Corp. (now renamed Eternal Energy Corp.) was incorporated
        in the
        State of Nevada on July 25, 2003 to engage in the acquisition, exploration
        and
        development of natural resource properties. As a result of our recent
        acquisition of the Project through the assignment to us of Merganser&#8217;s interest
        in the Participation Agreement, we have become an exploration stage oil and
        gas
        company engaged in the exploration for petroleum and natural gas in the State
        of
        Nevada. Our rights under the Participation Agreement entitle us to acquire
        petroleum and natural gas rights and leases in an area of mutual interest
        with
        Eden Energy Corp. Pursuant to the terms of the Participation Agreement, these
        rights include any renewals or extensions thereof, by virtue of which the
        holder
        is entitled to enter, access, drill for and remove petroleum and natural
        gas on
        the lands pertaining to the leases. The lands comprising the area of mutual
        interest are located in eastern Nevada.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Plan
        of Operation</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
        the
        coming year we plan to continue to explore our leasehold position in eastern
        Nevada. At the present time, these efforts are likely to include additional
        gravity surveys, well studies, continued surface mapping, and the possibility
        of
        seismic data purchase or acquisition. This work will be done in preparation
        for
        drilling one or two exploratory wells on our leases in the Big Sand Spring
        Valley Prospect in conjunction with Eden Energy as operator of the prospect.
        The
        Company currently has rights to a 50% working interest in approximately 82,184
        gross acres which expire in 2015 and which can be extended upon production
        from
        the leases. </font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Under
        the
        terms of the Participation Agreement, the Company anticipates spending between
        $2,000,000 and $3,000,000 on additional leasehold acquisitions, on additional
        geological and engineering studies and on drilling and completion costs in
        the
        next 12 months.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        will
        require additional funds to implement the work program set forth above. These
        funds may be raised through equity financing, debt financing, or other sources,
        which may result in further dilution in the equity ownership of our shares.
        There is no assurance that we will be able to obtain financing on favorable
        terms, or if at all. In addition, there is no assurance that we will be able
        to
        maintain our operations at a level sufficient for an investor to obtain a
        return
        on his investment in our common stock. Further, we may continue to be
        unprofitable.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Competitors</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        oil
        and gas industry is intensely competitive. We compete with numerous individuals
        and companies, including many major oil and gas companies, which have
        substantially greater technical, financial and operational resources and
        staffs.
        Accordingly, there is a high degree of competition for desirable oil and
        gas
        leases, suitable properties for drilling operations and necessary drilling
        equipment, as well as for access to funds. There are other competitors that
        have
        operations in the Nevada area and the presence of these competitors could
        adversely affect our ability to acquire additional leases.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Governmental
        Regulations</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        oil
        and gas operations are subject to various United States federal, state and
        local
        governmental regulations. Matters subject to regulation include discharge
        permits for drilling operations, drilling and abandonment bonds, reports
        concerning operations, the spacing of wells, and pooling of properties and
        taxation. From time to time, regulatory agencies have imposed price controls
        and
        limitations on production by restricting the rate of flow of oil and gas
        wells
        below actual production capacity in order to conserve supplies of oil and
        gas.
        The production, handling, storage, transportation and disposal of oil and
        gas,
        by-products thereof, and other substances and materials produced or used
        in
        connection with oil and gas operations are also subject to regulation under
        federal, state, provincial and local laws and regulations relating primarily
        to
        the protection of human health and the environment. To date, expenditures
        related to complying with these laws, and for remediation of existing
        environmental contamination, have not been significant in relation to the
        results of operations of our company. The requirements imposed by such laws
        and
        regulations are frequently changed and subject to interpretation, and we
        are
        unable to predict the ultimate cost of compliance with these requirements
        or
        their effect on our operations.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Research
        and Development</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        business plan is focused on a strategy for maximizing the long-term exploration
        and development of our oil and gas leases in Nevada. To date, execution of
        our
        business plan has largely focused on acquiring prospective oil and gas leases.
        We intend to establish a going forward exploration and development
        plan.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Properties</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Purchase Agreement, including our resulting rights under the Participation
        Agreement and related activities, entitles us the right to acquire a 50%
        working
        interest in federal oil and gas leases covering approximately 82,184 gross
        acres
        in Nye County, Nevada. The leases have a primary term of ten years from and
        after June 2005. The leases can be extended beyond their primary terms by
        commercial production therefrom.</font></div>
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        do not currently own any other
        property.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Employees</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Currently
        our only employees are our directors and officers. We do not expect any material
        changes in the number of employees over the next 12-month period. We do and
        will
        continue to outsource contract employment as needed. However, if we are
        successful in our initial and any subsequent drilling programs we may retain
        additional employees.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Risk
        Factors</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">An
        investment in our common stock involves a number of very significant risks.
        You
        should carefully consider the following risks and uncertainties in addition
        to
        other information in this prospectus in evaluating our company and its business
        before purchasing shares of our company's common stock. Our business, operating
        results and financial condition could be seriously harmed due to any of the
        following risks. The risks described below are all of the material risks
        that we
        are currently aware of that are facing our company. Additional risks not
        presently known to us may also impair our business operations. You could
        lose
        all or part of your investment due to any of these risks.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>There
        is no assurance that we will operate profitably or will generate positive
        cash
        flow in the future.</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
        we
        cannot generate positive cash flows in the future, or raise sufficient financing
        to continue our normal operations, then we may be forced to scale down or
        even
        close our operations. In particular, additional capital may be required in
        the
        event that:</font></div>
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              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">drilling
                  and completion costs for further wells increase beyond our expectations;
                  or</font></div>
              </td>
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        </table>
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      <div>
        <table cellpadding="0" cellspacing="0" id="list" width="100%">

            <tr valign="top" style="LINE-HEIGHT: 1.25">
              <td align="right" style="WIDTH: 36pt"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">we
                  encounter greater costs associated with general and administrative
                  expenses or offering costs.</font></div>
              </td>
            </tr>

        </table>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        occurrence of any of the aforementioned events could adversely affect our
        ability to meet our business plans.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        will
        depend almost exclusively on outside capital to pay for the continued
        exploration and development of our properties. Such outside capital may include
        the sale of additional stock and/or commercial borrowing. Capital may not
        continue to be available if necessary to meet these continuing exploration
        and
        development costs or, if the capital is available, that it will be on terms
        acceptable to us. The issuance of additional equity securities by us would
        result in a significant dilution in the equity interests of our current
        stockholders. Obtaining commercial loans, assuming those loans would be
        available, will increase our liabilities and future cash
        commitments.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
        we are
        unable to obtain financing in the amounts and on terms deemed acceptable
        to us,
        we may be unable to continue our business and as a result may be required
        to
        scale back or cease operations for our business, the result of which would
        be
        that our stockholders would lose some or all of their investment.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>A
        decline in the price of our common stock could affect our ability to raise
        further working capital and adversely impact our
        operations.</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
        prolonged decline in the price of our common stock could result in a reduction
        in the liquidity of our common stock and a reduction in our ability to raise
        capital. Because our operations have been primarily financed through the
        sale of
        equity securities, a decline in the price of our common stock could be
        especially detrimental to our liquidity and our continued operations. Any
        reduction in our ability to raise equity capital in the future would force
        us to
        reallocate funds from other planned uses and would have a significant negative
        effect on our business plans and operations, including our ability to develop
        new projects and continue our current operations. If our stock price declines,
        we may not be able to raise additional capital or generate funds from operations
        sufficient to meet our obligations.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>We
        have a limited operating history and if we are not successful in continuing
        to
        grow our business, then we may have to scale back or even cease our ongoing
        business operations.</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        company has a limited operating history and must be considered in the
        development stage. The success of the company is significantly dependent
        on a
        successful acquisition, drilling, completion and production program. Our
        company&#8217;s operations will be subject to all the risks inherent in the
        establishment of a developing enterprise and the uncertainties arising from
        the
        absence of a significant operating history. We may be unable to locate
        recoverable reserves or operate on a profitable basis. We are in the development
        stage and potential investors should be aware of the difficulties normally
        encountered by enterprises in the development stage. If our business plan
        is not
        successful, and we are not able to operate profitably, investors may lose
        some
        or all of their investment in our company.</font></div>
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        of our stock may be restricted by the SEC's "Penny Stock" regulations which
        may
        limit a stockholder's ability to buy and sell our
        stock.</em></strong></font></div>
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        U.S.
        Securities and Exchange Commission has adopted regulations which generally
        define "penny stock" to be any equity security that has a market price (as
        defined) less than $5.00 per share or an exercise price of less than $5.00
        per
        share, subject to certain exceptions. Our securities are covered by the penny
        stock rules, which impose additional sales practice requirements on
        broker-dealers who sell to persons other than established customers and
        "accredited investors." The term "accredited investor" refers generally to
        institutions with assets in excess of $5,000,000 or individuals with a net
        worth
        in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly
        with their spouse. The penny stock rules require a broker-dealer, prior to
        a
        transaction in a penny stock not otherwise exempt from the rules, to deliver
        a
        standardized risk disclosure document in a form prepared by the SEC which
        provides information about penny stocks and the nature and level of risks
        in the
        penny stock market. The broker-dealer also must provide the customer with
        current bid and offer quotations for the penny stock, the compensation of
        the
        broker-dealer and its salesperson in the transaction and monthly account
        statements showing the market value of each penny stock held in the customer's
        account. The bid and offer quotations, and the broker-dealer and salesperson
        compensation information, must be given to the customer orally or in writing
        prior to effecting the transaction and must be given to the customer in writing
        before or with the customer's confirmation. In addition, the penny stock
        rules
        require that prior to a transaction in a penny stock not otherwise exempt
        from
        these rules, the broker-dealer must make a special written determination
        that
        the penny stock is a suitable investment for the purchaser and receive the
        purchaser's written agreement to the transaction. These disclosure requirements
        may have the effect of reducing the level of trading activity in the secondary
        market for the stock that is subject to these penny stock rules. Consequently,
        these penny stock rules may affect the ability of broker-dealers to trade
        our
        securities. We believe that the penny stock rules discourage investor interest
        in and limit the marketability of, our common stock.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>NASD
        sales practice requirements may also limit a stockholder&#8217;s ability to buy and
        sell our stock.</em></strong></font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        addition to the &#8220;penny stock&#8221; rules described above, the NASD has adopted rules
        that require that in recommending an investment to a customer, a broker-dealer
        must have reasonable grounds for believing that the investment is suitable
        for
        that customer. Prior to recommending speculative low priced securities to
        their
        non-institutional customers, broker-dealers must make reasonable efforts
        to
        obtain information about the customer&#8217;s financial status, tax status, investment
        objectives and other information. Under interpretations of these rules, the
        NASD
        believes that there is a high probability that speculative low priced securities
        will not be suitable for at least some customers. The NASD requirements make
        it
        more difficult for broker-dealers to recommend that their customers buy our
        common stock, which may limit your ability to buy and sell our stock and
        have an
        adverse effect on the market for our shares.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Trading
        in our common shares on the OTC Bulletin Board is limited and sporadic making
        it
        difficult for our shareholders to sell their shares or liquidate their
        investments. </em></strong></font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        common shares are currently quoted on the OTC Bulletin Board. The trading
        price
        of our common shares has been subject to wide fluctuations. Trading prices
        of
        our common shares may fluctuate in response to a number of factors, many
        of
        which will be beyond our control. The stock market has generally experienced
        extreme price and volume fluctuations that have often been unrelated or
        disproportionate to the operating performance of companies with no current
        business operation. There can be no assurance that trading prices and price
        earnings ratios previously experienced by our common shares will be matched
        or
        maintained. These broad market and industry factors may adversely affect
        the
        market price of our common shares, regardless of our operating
        performance.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        the
        past, following periods of volatility in the market price of a company's
        securities, securities class-action litigation has often been instituted.
        Such
        litigation, if instituted, could result in substantial costs for us and a
        diversion of management's attention and resources.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Because
        of the early stage of development and the nature of our business, our securities
        are considered highly speculative.</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        securities must be considered highly speculative, generally because of the
        nature of our business and the early stage of its development. We are engaged
        in
        the business of exploring and, if warranted, developing commercial reserves
        of
        oil and gas. Our properties are in the exploration stage only and are without
        known reserves of oil and gas. Accordingly, we have not generated any revenues
        nor have we realized a profit from our operations to date and there is little
        likelihood that we will generate any revenues or realize any profits in the
        short term. Any profitability in the future from our business will be dependent
        upon locating and developing economic reserves of oil and gas, which itself
        is
        subject to numerous risk factors as set forth herein. Since we have not
        generated any revenues, we will have to raise additional monies through the
        sale
        of our equity securities or debt in order to continue our business
        operations.</font></div>
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          <div style="WIDTH: 100%; TEXT-ALIGN: center">
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>As
        our properties are in the exploration and development stage there can be
        no
        assurance that we will establish commercial discoveries on our
        properties.</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exploration
        for economic reserves of oil and gas is subject to a number of risk factors.
        Few
        properties that are explored are ultimately developed into producing oil
        and/or
        gas wells. Our properties are in the exploration stage only and are without
        proven reserves of oil and gas. We may not establish commercial discoveries
        on
        any of our properties.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>The
        potential profitability of oil and gas ventures depends upon factors beyond
        the
        control of our company.</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        potential profitability of oil and gas properties is dependent upon many
        factors
        beyond our control. For instance, world prices and markets for oil and gas
        are
        unpredictable, highly volatile, potentially subject to governmental fixing,
        pegging, controls, or any combination of these and other factors, and respond
        to
        changes in domestic, international, political, social, and economic
        environments. Additionally, due to worldwide economic uncertainty, the
        availability and cost of funds for production and other expenses have become
        increasingly difficult, if not impossible, to project. These changes and
        events
        will likely materially affect our financial performance.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Adverse
        weather conditions can also hinder drilling operations. A productive well
        may
        become uneconomic in the event water or other deleterious substances are
        encountered which impair or prevent the production of oil and/or gas from
        the
        well. In addition, production from any well may be unmarketable if it is
        impregnated with water or other deleterious substances. The marketability
        of oil
        and gas which may be acquired or discovered will be affected by numerous
        factors
        beyond our control. These factors include the proximity and capacity of oil
        and
        gas pipelines and processing equipment, market fluctuations of prices, taxes,
        royalties, land tenure, allowable production and environmental protection.
        These
        factors cannot be accurately predicted and the combination of these factors
        may
        result in our company not receiving an adequate return on invested
        capital.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Competition
        in the oil and gas industry is highly competitive and there is no assurance
        that
        we will be successful in acquiring the leases.</em></strong></font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        oil
        and gas industry is intensely competitive. We compete with numerous individuals
        and companies, including many major oil and gas companies, which have
        substantially greater technical, financial and operational resources and
        staffs.
        Accordingly, there is a high degree of competition for desirable oil and
        gas
        leases, suitable properties for drilling operations and necessary drilling
        equipment, as well as for access to funds. We cannot predict if the necessary
        funds can be raised or that any projected work will be completed. Our budget
        anticipates our acquisition of additional acreage in Nevada. This acreage
        may
        not become available or if it is available for leasing, that we may not be
        successful in acquiring the leases. There are other competitors that have
        operations in the Nevada area and the presence of these competitors could
        adversely affect our ability to acquire additional leases. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>The
        marketability of natural resources will be affected by numerous factors beyond
        our control which may result in us not receiving an adequate return on invested
        capital to be profitable or viable.</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        marketability of natural resources which may be acquired or discovered by
        us
        will be affected by numerous factors beyond our control. These factors include
        market fluctuations in oil and gas pricing and demand, the proximity and
        capacity of natural resource markets and processing equipment, governmental
        regulations, land tenure, land use, regulation concerning the importing and
        exporting of oil and gas and environmental protection regulations. The exact
        effect of these factors cannot be accurately predicted, but the combination
        of
        these factors may result in us not receiving an adequate return on invested
        capital to be profitable or viable.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Oil
        and gas operations are subject to comprehensive regulation which may cause
        substantial delays or require capital outlays in excess of those anticipated
        causing an adverse effect on our company.</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Oil
        and
        gas operations are subject to federal, state, and local laws relating to
        the
        protection of the environment, including laws regulating removal of natural
        resources from the ground and the discharge of materials into the environment.
        Oil and gas operations are also subject to federal, state, and local laws
        and
        regulations which seek to maintain health and safety standards by regulating
        the
        design and use of drilling methods and equipment. Various permits from
        government bodies are required for drilling operations to be conducted; no
        assurance can be given that such permits will be received. Environmental
        standards imposed by federal, provincial, or local authorities may be changed
        and any such changes may have material adverse effects on our activities.
        Moreover, compliance with such laws may cause substantial delays or require
        capital outlays in excess of those anticipated, thus causing an adverse effect
        on us. Additionally, we may be subject to liability for pollution or other
        environmental damages which it may elect not to insure against due to
        prohibitive premium costs and other reasons. To date we have not been required
        to spend any material amount on compliance with environmental regulations.
        However, we may be required to do so in future and this may affect our ability
        to expand or maintain our operations.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Exploration
        and production activities are subject to certain environmental regulations
        which
        may prevent or delay the commencement or continuance of our
        operations.</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        general, our exploration and production activities are subject to certain
        federal, state and local laws and regulations relating to environmental quality
        and pollution control. Such laws and regulations increase the costs of these
        activities and may prevent or delay the commencement or continuance of a
        given
        operation. Compliance with these laws and regulations has not had a material
        effect on our operations or financial condition to date. Specifically, we
        are
        subject to legislation regarding emissions into the environment, water
        discharges and storage and disposition of hazardous wastes. In addition,
        legislation has been enacted which requires well and facility sites to be
        abandoned and reclaimed to the satisfaction of state authorities. However,
        such
        laws and regulations are frequently changed and we are unable to predict
        the
        ultimate cost of compliance. Generally, environmental requirements do not
        appear
        to affect us any differently or to any greater or lesser extent than other
        companies in the industry.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        believe that our operations comply, in all material respects, with all
        applicable environmental regulations.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        are
        not fully insured against all possible environmental risks.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Exploratory
        drilling involves many risks and we may become liable for pollution or other
        liabilities, which may have an adverse effect on our financial
        position.</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Drilling
        operations generally involve a high degree of risk. Hazards such as unusual
        or
        unexpected geological formations, power outages, labor disruptions, blow-outs,
        sour gas leakage, fire, inability to obtain suitable or adequate machinery,
        equipment or labor, and other risks are involved. We may become subject to
        liability for pollution or hazards against which it cannot adequately insure
        or
        which it may elect not to insure. Incurring any such liability may have a
        material adverse effect on our financial position and operations.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Any
        change to government regulation/administrative practices may have a negative
        impact on our ability to operate and our
        profitability.</em></strong></font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        laws,
        regulations, policies or current administrative practices of any government
        body, organization or regulatory agency in the United States or any other
        jurisdiction, may be changed, applied or interpreted in a manner which will
        fundamentally alter the ability of our company to carry on our business.
        The
        actions, policies or regulations, or changes thereto, of any government body
        or
        regulatory agency, or other special interest groups, may have a detrimental
        effect on us. Any or all of these situations may have a negative impact on
        our
        ability to operate and/or our profitably.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Our
        Bylaws contain provisions indemnifying our officers and directors against
        all
        costs, charges and expenses incurred by them.</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        Bylaws contain provisions with respect to the indemnification of our officers
        and directors against all costs, charges and expenses, including an amount
        paid
        to settle an action or satisfy a judgment, actually and reasonably incurred
        by
        him, including an amount paid to settle an action or satisfy a judgment in
        a
        civil, criminal or administrative action or proceeding to which he is made
        a
        party by reason of his being or having been one of our directors or
        officers.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Investors'
        interests in our company will be diluted and investors may suffer dilution
        in
        their net book value per share if we issue additional shares or raise funds
        through the sale of equity securities.</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        the
        event that we are required to issue any additional shares or enter into private
        placements to raise financing through the sale of equity securities, investors'
        interests in our company will be diluted and investors may suffer dilution
        in
        their net book value per share depending on the price at which such securities
        are sold. If we issue any such additional shares, such issuances also will
        cause
        a reduction in the proportionate ownership and voting power of all other
        shareholders. Further, any such issuance may result in a change in our
        control.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
          </div>
        </div>
        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Our
        Bylaws do not contain anti-takeover provisions, which could result in a change
        of our management and directors if there is a take-over of our company.
</em></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        do not
        currently have a shareholder rights plan or any anti-takeover provisions
        in our
        Bylaws. Without any anti-takeover provisions, there is no deterrent for a
        take-over of our company, which may result in a change in our management
        and
        directors.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Directors
        and Executive Officers</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        following table sets forth information concerning our current executive officers
        and directors:</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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            <tr>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Name</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="1%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td colspan="3" valign="bottom" width="4%" style="BORDER-BOTTOM: #808080 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Age</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="1%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="60%" style="BORDER-BOTTOM: #808080 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Position</strong></font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="19%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Bradley
                  M. Colby</font></div>
              </td>
              <td align="left" valign="bottom" width="1%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="right" valign="top" width="1%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              </td>
              <td align="right" valign="top" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">49</font></div>
              </td>
              <td align="left" valign="top" width="1%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="59%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director,
                  President, CEO, Treasurer, CFO and Secretary</font></div>
              </td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="top" width="19%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">John
                  Anderson</font></div>
              </td>
              <td align="left" valign="bottom" width="1%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="right" valign="top" width="1%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              </td>
              <td align="right" valign="top" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">41</font></div>
              </td>
              <td align="left" valign="top" width="1%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="59%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="19%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Frederick
                  Fisher </font></div>
              </td>
              <td align="left" valign="bottom" width="1%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="right" valign="top" width="1%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              </td>
              <td align="right" valign="top" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">46</font></div>
              </td>
              <td align="left" valign="top" width="1%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="59%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director</font></div>
              </td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="top" width="19%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Tom
                  Murdoch</font></div>
              </td>
              <td align="left" valign="bottom" width="1%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="right" valign="top" width="1%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              </td>
              <td align="right" valign="top" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">42</font></div>
              </td>
              <td align="left" valign="top" width="1%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="59%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="19%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chris
                  Sturdy </font></div>
              </td>
              <td align="left" valign="bottom" width="1%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="right" valign="top" width="1%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              </td>
              <td align="right" valign="top" width="3%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">42</font></div>
              </td>
              <td align="left" valign="top" width="1%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="59%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director</font></div>
              </td>
            </tr>

        </table>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Bradley
        M. Colby</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        was
        appointed as the Company&#8217;s President, Chief Executive Officer, Treasurer, Chief
        Financial Officer and Secretary, and also as a Director, on November 4, 2005.
        Mr. Colby has over 25 years of experience in exploration and production land
        and
        geological work, including the acquisition and disposition of producing
        properties, prospect generation and development, and the marketing and sale
        of
        multiple drilling joint ventures. Prior to joining the Company, Mr. Colby
        was a
        principal at Westport Petroleum, Inc. since December 2001, where he bought
        and
        sold producing properties for his account. From March 2000 to November 2001,
        Mr.
        Colby was the President, Chief Executive Officer and a Director of Kern County
        Resources Ltd., a private oil and gas exploration and production company
        he
        founded. Mr. Colby received a B.S. in Business-Minerals Land Management from
        the
        University of Colorado in 1979 and had studied petroleum engineering at the
        Colorado School of Mines.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>John
        Anderson</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        was
        appointed as a Director of the Company on November 4, 2005. Since May 2004,
        Mr.
        Anderson has been President, Chief Executive Officer, Secretary, Treasurer
        and a
        Director of Key Gold Corporation, a publicly traded Nevada corporation involved
        in the exploration and mining for precious and non-precious metals and other
        mineral resources in China. From December of 1994 to the present, Mr. Anderson
        has been President of Axiom, a personal consulting and investing company
        primarily involved in capital raising for private and public companies in
        North
        America, Europe, and Asia. From February of 2001 to the present, he has served
        as a Director of Wescorp Energy, Inc., a publicly traded Nevada corporation,
        and
        from March of 2003 to the present as its President and Chief Executive Officer.
        In addition, from 2000 to the present he has served as a Director of CTI
        Diversified Holdings Ltd. and from 2003 to the present as a Director of Brett
        Resources Corp. Mr. Anderson holds a B.A. from University of Western
        Ontario.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Frederick
        Fisher</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        has been
        a Director of the Company since inception. He was our President, CEO, Treasurer
        and CFO since the Company&#8217;s inception until his resignation on November 4, 2005.
        From May 1997 to the present, he has also been a Director of StarAsia Capital
        Inc., a private venture capital company for emerging mining and start-up
        companies located in Bangkok, Thailand. From June 2001 to the present, he
        has
        worked out of Toronto, Ontario and from May 1997 to June 2001, he worked
        in
        Bangkok, Thailand. From September 1998 to March 2000, he was a Director and
        Officer of Sabai Sabai Enterprises Corp., an importer of low-priced quality
        products from Southeast Asia for distribution throughout North America based
        out
        of Bangkok, Thailand. From September 1997 to April 1999, he was a Director
        and
        Officer of Meximed Industries, a medical supplies distributor based out of
        Vancouver, BC. Some of the publicly-trading mining companies he has worked
        with
        in the past are Melinga Resources (MNA:Vancouver Stock Exchange), Cercal
        Resources (CER:Alberta Stock Exchange), Beaufield Resources Inc. (BFD:Vancouver
        Stock Exchange), Victorian Eneuretic (VIC:Vancouver Stock Exchange), Yukon
        Gold
        Corp. (Vancouver Stock Exchange), Innexus Biotechnology, Inc. (IXS:TXS Venture
        Exchange), St. Elias Mines Ltd. (SLI:TSX Venture Exchange). He assisted these
        companies in developing their business and operating plans and raising financing
        for their mining operations by introducing them to potential mining partners
        and
        venture capitalists. From 1986 to 1989, Mr. Fisher was a stockbroker at
        Jefferson Securities in Vancouver, B.C. He received an Honors B.A. Degree
        from
        York University in Toronto in 1984.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Tom
        Murdoch</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        has been
        a Director of the Company since inception, and was the Secretary from inception
        until his resignation on November 4, 2005. From March 1999 to the present,
        he
        has been the Sales/Program Manager for Matcor Automotive Inc., an automotive
        parts manufacturer in Toronto, Ontario specializing in metal stamped and
        welded
        assemblies. From August 1992 to March 1999, he was the Manager of Procurement
        and New Model Development for Honda of Canada Manufacturing Inc. in Alliston,
        Ontario. Over the past several years, he assisted Beautifle Resources
        (BFD:Vancouver Stock Exchange), Mountain Lake Resources and Terra Camp Mining,
        privately-held mining companies, in developing their business and operating
        plans and raising financing for their mining operations by introducing them
        to
        potential mining partners and venture capitalists. He has also been involved
        in
        other areas of mining over the years. Mr. Murdoch earned a Bachelors Degree
        in
        Economics from Wilfrid Laurier University in Waterloo, Ontario in May of
        1985.
        Subsequently, he earned a post graduate Diploma in Business Administration
        from
        Wilfrid Laurier University in May of 1986.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
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          <div style="WIDTH: 100%; TEXT-ALIGN: center">
          </div>
          <div style="WIDTH: 100%; TEXT-ALIGN: center">
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          <div id="GLHDR" style="WIDTH: 100%" align="right">
          </div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Chris
        Sturdy</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        has been
        a Director of the Company since inception. From May 1993 to the present,
        he has
        been employed as a designer and customer service specialist with Nickel General
        Contracting, a full service commercial and residential builder specializing
        in
        renovating turn of the century homes, located in Mississauga, Ontario. From
        March 1998 until May 2001, he also worked as an importer for Vereshack Agencies,
        an importer representing numerous European metal clasp and pull manufacturers
        selling to the Canadian fashion industry, with their primary customer being
        Roots Canada. The company is a family business in operation since the 1950's
        and
        is located in Mississauga, Ontario. Mr. Sturdy attended Sheridan College
        of
        Applied Arts and Technologies in Oakville, Ontario where he studied liberal
        arts
        during 1983 and 1984. He also attended Harris Institute for the Arts in Toronto,
        Ontario where he studied a Recording Industry Orientation program during
        1991
        and 1992.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There
        are
        no family relationships among any of our directors, executive officers or
        key
        employees.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Indemnification
        of Directors and Officers; Agreements</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        Articles of Incorporation provide that no director or officer of the Company
        will be personally liable to the Company or any of its stockholders for damages
        for breach of fiduciary duty as a director or officer or for any act or omission
        of any such director or officer, except for (i) acts or omissions involving
        intentional misconduct, fraud or a knowing violation of law or (ii) the payment
        of dividends in violation of Section 78.300 of the Nevada Revised Statutes.
        Our
        Bylaws provide indemnification by the Company of any individual made a party
        to
        proceeding because he is or was an officer, director, employee or agent of
        the
        Company against liability incurred in the proceeding, to the fullest extent
        permissible under the laws of Nevada. The Bylaws provide that the Company
        advance the expenses of officers and directors incurred in defending any
        such
        proceeding, provided that the Company received an undertaking from such person
        to repay the expenses advanced if it is ultimately determined that he is
        not
        entitled to be indemnified.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        connection with Mr. Colby&#8217;s appointment as the Company&#8217;s President, Chief
        Executive Officer, Treasurer, Chief Financial Officer and Secretary, the
        Company
        entered into an employment agreement with Mr. Colby. The employment agreement
        has a two-year term.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        do not
        have agreements with any of our other directors.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Certain
        Relationships and Related Transactions</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        connection with the Company&#8217;s acquisition of the Project, and after the related
        35-for-1 forward stock split and the related merger of our wholly owned
        subsidiary, Mr. Colby acquired beneficial ownership of 26,250,000 shares
        (post-split) of our common stock held by Mr. Fisher and Mr. Murdoch, of which
        23,000,000 shares (post-split) were then returned to the Company for
        cancellation by Mr. Colby and are no longer outstanding. As a result, Mr.
        Colby
        acquired 3,250,000 shares (post-split) of our common stock.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Voting
        Securities</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        authorized capital stock consists of 875,000,000 shares of common stock,
        $0.001
        par value. Our common stock is the only class of voting securities issued
        and
        outstanding. Each share of common stock is entitled to one vote. On November
        7,
        2005 (after adjustment for the split and the return to our treasury for
        cancellation of 23,000,000 shares of our common stock), there were 28,876,000
        shares of our common stock issued and outstanding.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Market
        Price of and Dividends on the Registrant's Common Equity and Related Stockholder
        Matters</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        common stock, par value $.001, is dually quoted on the Pink Sheets and the
        OTC
        Bulletin Board under the symbol &#8220;EERG&#8221; effective November 7, 2005, and, prior to
        that, it was quoted under the symbol &#8220;GHPR&#8221;; however, no active trading market
        in our securities has yet commenced. As of November 7, 2005, there were
        28,876,000 shares (after taking into effect our recently completed 35-for-1
        forward stock split and our recent private placement) of our common stock
        outstanding and approximately 36 holders of record. A total of 3,250,000
        shares
        (post-split) are beneficially held by Mr. Colby, and an additional 1,126,000
        shares (post-split) are held by investors in our recently completed private
        placement, all of which shares are restricted securities, as that term is
        defined in Rule 144 of the Rules and Regulations of the Securities and Exchange
        Commission, promulgated under the Act. Under Rule 144, such shares can only
        be
        publicly sold, subject to volume restrictions and certain restrictions on
        the
        manner of sale, commencing one year after their acquisition.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        have
        not paid any cash dividends since inception to the holders of our common
        stock.
        We currently intend to retain any earnings for internal cash flow
        use.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Compensation
        of Directors and Executive Officers </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        do not
        currently compensate our directors in cash for their service as members of
        our
        board of directors. We do reimburse our directors for reasonable expenses
        in
        connection with attendance at board meetings. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        following table sets forth certain annual and long-term compensation paid
        to our
        Chief Executive Officer and our executive officers.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Summary
        Compensation Table</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <td align="left" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff solid">
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              </td>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Long-Term</strong></font></div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Compensation</strong></font></div>
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              <td align="left" valign="bottom" width="7%" style="BORDER-BOTTOM: #ffffff solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <td align="left" valign="bottom" width="8%" style="BORDER-BOTTOM: #ffffff solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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            <tr>
              <td align="left" valign="bottom" width="25%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <td align="left" valign="bottom" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="6%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <td align="left" valign="bottom" width="8%">
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              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <td align="left" valign="bottom" width="6%">
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              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <td align="left" valign="bottom" width="7%">
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="25%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="6%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Annual</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="6%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Stock</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Underlying</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="1%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="bottom" width="8%">
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              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <td align="left" valign="bottom" width="6%">
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              <td align="left" valign="bottom" width="6%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Award(s)</strong></font></div>
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              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <td align="left" valign="bottom" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Options</strong></font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <td align="left" valign="bottom" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Compensation</strong></font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <td align="left" valign="bottom" width="5%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Year</strong></font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <td align="left" valign="bottom" width="5%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>($)</strong></font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <td align="left" valign="bottom" width="6%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>($)</strong></font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>($)</strong></font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <td align="left" valign="bottom" width="6%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>($)</strong></font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <td align="left" valign="bottom" width="7%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(#)</strong></font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>($)</strong></font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Frederick
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              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
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              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0</font></div>
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              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="6%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0</font></div>
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              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0</font></div>
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              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="6%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0</font></div>
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              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0</font></div>
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              <td align="left" valign="bottom" width="1%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0</font></div>
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              <td align="left" valign="bottom" width="25%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Treasurer,
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              </td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="6%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0</font></div>
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              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="6%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0</font></div>
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              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0</font></div>
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              <td align="left" valign="bottom" width="1%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0</font></div>
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            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="25%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Tom
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              </td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2005</font></div>
              </td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="6%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="6%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td align="left" valign="bottom" width="1%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="bottom" width="25%">&#160;</td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004</font></div>
              </td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="6%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td align="left" valign="top" width="6%">
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              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <td align="left" valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0</font></div>
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              <td align="left" valign="bottom" width="1%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <td align="left" valign="top" width="8%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0</font></div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">60,000*</font></div>
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              <td align="left" valign="top" width="6%">
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              <td align="left" valign="top" width="5%">&#160;</td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <td align="left" valign="top" width="5%">&#160;</td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <td align="left" valign="top" width="6%">&#160;</td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <td align="left" valign="top" width="8%">&#160;</td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <td align="left" valign="top" width="6%">&#160;</td>
              <td align="left" valign="bottom" width="2%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <td align="left" valign="top" width="7%">&#160;</td>
              <td align="left" valign="bottom" width="1%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <td align="left" valign="top" width="8%">&#160;</td>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*
        Effective November 4, 2005, Mr. Fisher and Mr. Murdoch resigned as executive
        officers of the Company. On the same date, Mr. Colby was appointed as the
        Company&#8217;s President, CEO, Treasurer, CFO and Secretary. Mr. Colby&#8217;s employment
        agreement provides that Mr. Colby is entitled to a signing bonus of $125,000,
        an
        annual salary of $60,000 and an option to purchase 1,443,800 shares (post-split)
        of the Company&#8217;s common stock.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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        Ownership of Certain Beneficial Owners and Management</strong></font></div>
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        following table sets forth certain information regarding the shares of common
        stock beneficially owned or deemed to be beneficially owned as of November
        7,
        2005 by: (i) each person whom we know beneficially owns more than 5% of our
        common stock, (ii) each of our directors, (iii) the executive officers named
        in
        the summary compensation table, and (iv) all such directors and executive
        officers as a group. </font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Except
        as
        indicated by the footnotes below, we believe, based on the information furnished
        to us, that the persons and entities named in the table below have sole voting
        and investment power with respect to all shares of our common stock that
        they
        beneficially own, subject to applicable community property laws. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
        computing the number of shares of common stock beneficially owned by a person
        and the percentage ownership of that person, we deemed outstanding shares
        of
        common stock subject to options or warrants held by that person that are
        currently exercisable or exercisable within 60 days of November 7, 2005.
        We did
        not deem these shares outstanding, however, for the purpose of computing
        the
        percentage ownership of any other person.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">

            <tr>
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">
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                  of Common</strong></font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Percent
                  of Common</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Stock
                  Beneficially</strong></font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Stock
                  Beneficially</strong></font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Owned
                  (1)</strong></font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: medium none">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Owned
                  (1)</strong></font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: medium none">&#160;</td>
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              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #000000 thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Name</strong></font></div>
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              <td align="right" colspan="2" valign="bottom" width="12%" style="BORDER-BOTTOM: #000000 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="11%" style="BORDER-BOTTOM: #000000 thin solid">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
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              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Bradley
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              <td width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3,250,000</font></div>
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              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11.3</font></div>
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              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">%</font></div>
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              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Frederick
                  Fisher</font></div>
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              <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Tom
                  Murdoch</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ccffcc">&#160;</td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chris
                  Sturdy</font></div>
              </td>
              <td width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="BORDER-BOTTOM: #ffffff">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">0</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="BORDER-BOTTOM: #ffffff">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="71%" style="BORDER-BOTTOM: #ccffcc">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">John
                  Anderson</font></div>
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                  directors and executive officers as a group (5 persons)</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Notes
        to
        Beneficial Ownership Table: </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)
        Applicable percentage ownership is based on 28,876,000 shares (post-split)
        of
        common stock outstanding at November 7, 2005. The number of shares of common
        stock owned are those &#8220;beneficially owned&#8221; as determined under the rules of the
        Securities and Exchange Commission, including any shares of common stock
        as to
        which a person has sole or shared voting or investment power and any shares
        of
        common stock which the person has the right to acquire within sixty (60)
        days
        through the exercise of any option, warrant or right. </font></div>
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        Includes 2,500,000 shares (post-split) owned by
        Mr. Colby and an aggregate of 750,000 shares (post-split) owned by five members
        of his immediate family as to which he disclaims beneficial
        ownership.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Committees
        of the Board of Directors </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        do not
        have standing audit, nominating or compensation committees of the board of
        directors, or committees performing similar functions, and therefore our
        entire
        board of directors performs such functions. We are not currently listed on
        any
        national exchange and are not required to maintain such committees by any
        self-regulatory agency. We do not believe it is necessary for our board of
        directors to appoint such committees because the volume of matters that come
        before our board of directors for consideration permits each director to
        give
        sufficient time and attention to such matters to be involved in all decision
        making. Messrs. Sturdy and Anderson are independent directors. All directors
        participate in the consideration of director nominees. We do not have a policy
        with regard to attendance at board meetings. </font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        do not
        have a policy with regard to consideration of nominations of directors. We
        accept nominations for directors from our security holders. There is no minimum
        qualification for a nominee to be considered by our directors. All of our
        directors will consider any nomination and will consider such nomination
        in
        accordance with his or her fiduciary responsibility to the Company and its
        stockholders. </font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Security
        holders may send communications to our board of directors by writing to Eternal
        Energy Corp., 2120 West Littleton Blvd., Suite 300, Littleton, Colorado 80120,
        attention Board of Directors or any specified director. Any correspondence
        received at the foregoing address to the attention of one or more directors
        is
        promptly forwarded to such director or directors.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        3.02 Unregistered Sales of Equity Securities.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
        November 7, 2005, the Company sold to accredited investors pursuant to
        subscription agreements, in a private placement offering (the &#8220;Private
        Placement&#8221;), securities consisting of an aggregate of up to 1,126,000 shares
        (the &#8220;Shares&#8221;) of its common stock and common stock purchase warrants (the
&#8220;Warrants&#8221;) to purchase up to an aggregate of 1,126,000 shares of its common
        stock (the &#8220;Warrant Shares&#8221;), for an aggregate purchase price of $1,126,000. The
        Warrants have an exercise period of two years and an exercise price of $1.20
        per
        share. Pursuant to the terms of the Registration Rights Agreement entered
        into
        by the Company and the investors, the Company agreed to file within 90 days
        after the closing of the Private Placement a registration statement to cover
        the
        resale of the Shares, the Warrants and the Warrant Shares. If a registration
        statement is not filed with the SEC within that time period, the Company
        will
        pay to each investor an amount equal to 1.0% of the aggregate amount invested
        by
        the investor for each 30-day period following the filing deadline until the
        registration statement is filed.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        securities sold by the Company in the Private Placement were exempt from
        registration under the Securities Act of 1933, as amended, pursuant to
        Regulation S promulgated thereunder.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
        copy of
        each of the form of Subscription Agreement, the form of Common Stock Purchase
        Warrant and the Registration Rights Agreement are attached as Exhibits 10.3,
        10.4 and 10.5, respectively, and are incorporated herein by reference. The
        press
        release attached as Exhibit 99.1 is incorporated herein by
        reference.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        5.01 Changes in Control of Registrant.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        5.02 Departure of Directors or Principal Officers; Election of Directors;
        Appointment of Principal Officers.</strong></font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        November 4, 2005, Frederick Fisher resigned as the Company&#8217;s President, Chief
        Executive Officer, Treasurer and Chief Financial Officer and Tom Murdoch
        resigned as the Secretary. Effective ten days from the filing of an information
        statement pursuant to Rule 14f-1 and its distribution to the Company&#8217;s
        stockholders, Frederick Fisher, Tom Murdoch and Chris Sturdy resigned from
        the
        Company&#8217;s board of directors.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        November 4, 2005, the Company appointed Bradley M. Colby as its President,
        Chief
        Executive Officer, Treasurer, Chief Financial Officer and Secretary. In
        addition, Bradley M. Colby and John Anderson were appointed to the Company&#8217;s
        board of directors.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal
        Year.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
        November 4, 2005, the Company approved and adopted an amendment to its Bylaws,
        which provides that if a vacancy occurs on the board of directors, the directors
        remaining in office may fill the vacancy. A copy of Amendment No. 1 to the
        Bylaws is attached as Exhibit 3(ii) and is incorporated herein by
        reference.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font>&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        disclosure regarding the Articles of Merger in Item 2.01 and Exhibit 3(i).3
        hereto are incorporated herein by reference. Effective on November 7, 2005,
        the
        Articles of Merger amended the Company&#8217;s Articles of Incorporation and changed
        its name to &#8220;Eternal Energy Corp.&#8221; A copy of the press release announcing the
        name change is attached as Exhibit 99.2 and is incorporated herein by reference.
        <font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        Company also effected a 35-for-1 forward stock split, with a record date
        of
        November 7, 2005. The Certificate of Change attached as Exhibit 3(i).2 is
        incorporated herein by reference.</font></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        9.01 Financial Statements and Exhibits.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(d)
        Exhibits</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
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              <td align="left" valign="middle" width="64%" style="BORDER-BOTTOM: #000000 thin solid">
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                  of Exhibit</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="7%">
                <div>&#160;</div>
                <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3(i).1*&#160;</font></div>
              </td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="middle" width="64%">
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Articles
                  of Incorporation filed with the Nevada Secretary of State on July
                  25,
                  2003.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
            </tr>
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              <td align="left" valign="top" width="7%">
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                <div>&#160;</div>
              </td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="top" width="64%"><br>
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                  of Change filed with the Nevada Secretary of State effective November
                  7,
                  2005.</font></div>
              </td>
            </tr>
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              <td align="left" valign="top" width="7%">
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                  </font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="top" width="64%">
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Articles
                  of Merger filed with the Nevada Secretary of State effective November
                  7,
                  2005.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
            </tr>
            <tr bgcolor="#ffffff">
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3(ii)</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="top" width="64%">
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Amendment
                  No. 1 to Bylaws, adopted November 4, 2005.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.1</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="top" width="64%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Agreement
                  and Plan of Merger between Golden Hope Resources Corp. (renamed
                  Eternal
                  Energy Corp.) and Eternal Energy Corp., filed with the Nevada Secretary
                  of
                  State effective November 7, 2005.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.2</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="top" width="64%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Purchase
                  and Sale Agreement between Eternal Energy Corp. and Merganser Limited,
                  dated November 7, 2005.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.3</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="top" width="64%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
                  of Subscription Agreement.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.4</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="top" width="64%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
                  of Common Stock Purchase Warrant.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.5</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="top" width="64%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registration
                  Rights Agreement.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
            </tr>
            <tr bgcolor="#ffffff">
              <td align="left" valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="top" width="64%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Press
                  Release dated November 9, 2005.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="7%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.2</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
              <td align="left" valign="top" width="2%">&#160;</td>
              <td align="left" valign="top" width="64%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Press
                  Release dated November 7, 2005.</font></div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
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        </table>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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        <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*
          Incorporated by reference from the Company&#8217;s Form 10-SB12G filed on August 18,
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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        has
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        duly authorized.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
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            <tr>
              <td align="left" valign="top" width="33%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date:
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
              </td>
            </tr>
            <tr>
              <td align="left" valign="top" width="33%">&#160;</td>
              <td align="left" colspan="2" valign="top" width="44%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="top" width="33%" style="BORDER-BOTTOM: #ffffff thin solid">&#160;</td>
              <td align="left" valign="bottom" width="5%" style="BORDER-BOTTOM: #ffffff thin solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:</font></div>
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                Bradley M. Colby</font></td>
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              <td align="left" valign="top" width="33%">&#160;</td>
              <td align="left" valign="top" width="5%">&#160;</td>
              <td align="left" valign="top" width="39%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Bradley
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              <td align="left" valign="top" width="5%">&#160;</td>
              <td align="left" valign="top" width="39%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">President
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">
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        <div>
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              <tr>
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                <td align="left" valign="middle" width="64%" style="BORDER-BOTTOM: #000000 thin solid">
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                </td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="middle" width="64%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Articles
                    of Incorporation filed with the Nevada Secretary of State on
                    July 25,
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                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
                </td>
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                <td align="left" valign="top" width="7%">
                  <div>&#160;</div>
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                  <div>&#160;</div>
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                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="64%"><br>
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              <tr bgcolor="#ccffcc">
                <td align="left" valign="top" width="7%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3(i).3
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                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                </td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="64%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Articles
                    of Merger filed with the Nevada Secretary of State effective
                    November 7,
                    2005.</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                </td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="top" width="7%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3(ii)</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                </td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="64%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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                    No. 1 to Bylaws, adopted November 4, 2005.</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                </td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="top" width="7%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.1</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                </td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="64%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Agreement
                    and Plan of Merger between Golden Hope Resources Corp. (renamed
                    Eternal
                    Energy Corp.) and Eternal Energy Corp., filed with the Nevada
                    Secretary of
                    State effective November 7, 2005.</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                </td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="top" width="7%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.2</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                </td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="64%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Purchase
                    and Sale Agreement between Eternal Energy Corp. and Merganser
                    Limited,
                    dated November 7, 2005.</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                </td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="top" width="7%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.3</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                </td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="64%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
                    of Subscription Agreement.</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                </td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="top" width="7%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.4</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                </td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="64%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Form
                    of Common Stock Purchase Warrant.</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                </td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="top" width="7%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.5</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                </td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="64%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registration
                    Rights Agreement.</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                </td>
              </tr>
              <tr bgcolor="#ffffff">
                <td align="left" valign="top" width="7%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                </td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="64%">
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Press
                    Release dated November 9, 2005.</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                </td>
              </tr>
              <tr bgcolor="#ccffcc">
                <td align="left" valign="top" width="7%">
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                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.2</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                </td>
                <td align="left" valign="top" width="2%">&#160;</td>
                <td align="left" valign="top" width="64%">
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                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Press
                    Release dated November 7, 2005.</font></div>
                  <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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          Incorporated by reference from the Company&#8217;s
          Form 10-SB12G filed on August 18, 2004.</font></div>
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{"company-data": {"conformed-name": "GOLDEN HOPE RESOURCES CORP", "cik": "0001282613", "assigned-sic": "1000", "irs-number": "000000000", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-50906", "film-number": "051190771"}, "business-address": {"street1": "1155 W PENDER ST", "city": "VANCOUVER BC CAN V6E 2P4", "state": "A1", "zip": "00000", "phone": "604-605-7012"}}
Unassociated Document
UNITED
        STATES
SECURITIES
        AND EXCHANGE COMMISSION
Washington,
        DC 20549
FORM
        8-K
CURRENT
        REPORT
Pursuant
        to Section 13 or 15(d) of the Securities Exchange Act of
        1934
Date
        of
        Report (Date of earliest event reported)
November
        4, 2005
ETERNAL
        ENERGY CORP.
(Exact
        name of registrant as specified in its chapter)
Nevada
0-50906
20-0237026
(State
                  or other jurisdiction
of
                  incorporation)
(Commission
File
                  Number)
(IRS
                  Employer
Identification
                  No.)
2120
                  West Littleton Blvd., Suite 300
Littleton,
                  Colorado 80120
(Address
                  of principal executive offices) (Zip
                  Code)
Registrant's
        telephone number, including area code:
(303)
        385-1230
Golden
                  Hope Resources Corp.
1155
                  W. Pender Street, Suite 708
Vancouver,
                  B.C., Canada V6E 2P4
(Former
                  name or former address, if changed since last
                  report)
Check
        the
        appropriate box below if the Form 8-K filing is intended to simultaneously
        satisfy the filing obligation of the registrant under any of the following
        provisions:
o
Written
        communications pursuant to Rule 425 under the Securities Act (17 CFR
        230.425)
o
Soliciting
        material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
        240.14a-12)
o
Pre-commencement
        communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
        240.14d-2(b))
o
Pre-commencement
        communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
        240.13e-4(c))
ITEM
        1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.
ITEM
        2.01 COMPLETION OF ACQUISITION OR DISPOSITION OF ASSETS.
On
        November 7, 2005, Golden Hope Resources Corp., a Nevada corporation (the
        "Company"), and Eternal Energy Corp., a Nevada corporation and a newly formed
        merger subsidiary wholly owned by the Company ("Merger Sub"), consummated a
        merger transaction (the "Merger") whereby Merger Sub merged into the Company,
        with the Company as the surviving corporation. The Company and Merger Sub
        filed
        the Articles of Merger, which had an effective date of November 7, 2005,
        with
        the Secretary of State of Nevada, along with the Agreement and Plan of Merger
        entered into by the two parties effective as of November 7, 2005 (the "Merger
        Agreement"). The Merger Agreement and the Articles of Merger provided for an
        amendment of the Company's Articles of Incorporation, which changed the
        Company's name to "Eternal Energy Corp." effective as of November 7, 2005. A
        copy of the Merger Agreement is attached as Exhibit 10.1 and a copy of the
        Articles of Merger is attached as Exhibit 3(i).3, and both are incorporated
        herein by reference.
As
        a
        result of the Merger, the Company acquired all of the contractual rights
        and
        interests, and assumed all of the liabilities, of Merger Sub with respect
        to a
        Purchase and Sale Agreement (the "Purchase Agreement"). Effective November 7,
        2005, Merger Sub entered into the Purchase Agreement with Merganser Limited,
        whereby Merganser sold and Merger Sub purchased all of the rights, title
        and
        interest of Merganser under a Participation Agreement dated November 1, 2005
        (the "Participation Agreement"), by and between Eden Energy Corp., a Nevada
        corporation, and Merganser. The Participation Agreement sets forth participation
        rights between Merganser and Eden, with respect to a joint venture between
        Eden
        and Cedar Strat Corporation, a Nevada corporation, for acquiring oil and
        gas
        leases and drilling wells to explore for oil and natural gas reserves on
        the Big
        Sand Spring Valley Prospect, located in Nye County, Nevada (the "Project"). As
        consideration, Merger Sub agreed to issue to Merganser 1,000,000 shares of
        the
        Company's common stock for each 10,000,000 equivalent barrels of net proved oil
        reserves, in any calendar year, attributable to Merger Sub's interests in the
        Participation Agreement. In the event that the Company's proved reserves for any
        calendar year are less than 10,000,000 equivalent barrels of oil, Merganser
        would not be entitled to any shares of common stock for that year. In each
        succeeding calendar year, Merganser will be entitled to receive additional
        shares for any new reserve additions to the Company's reserve report for that
        calendar year, payable at the same formula described above.
Pursuant
        to the Participation Agreement, Merganser has the right to acquire 50% of
        all of
        the interests that Eden has in the Project. The initial consideration payable
        to
        Eden for such rights is $2,667,000. Under the Participation Agreement, after
        the
        initial consideration is fully paid, all subsequent costs are to be borne
        50% by
        Eden and 50% by Merganser, and ownership of the oil leases and additional
        acreage will be owned 50% by Eden and 50% by Merganser. The parties agreed
        that
        the operation of the Project will be governed by the AAPL Form 610-1989 Model
        Form Operating Agreement, with Eden named as the operator. The Participation
        Agreement has a term of 10 years, and upon the expiration of the Participation
        Agreement, each prospect will be operated in accordance with the operating
        agreement covering any oil and gas leases acquired under the Participation
        Agreement. As a result of the Purchase Agreement and the Merger discussed
        above,
        the Company has acquired all of Merganser's rights under the Participation
        Agreement.
A
        copy of
        the Purchase Agreement, which exhibits include the Participation Agreement
        and
        the AAPL Form 610-1989 Model Form Operating Agreement, is attached as Exhibit
        10.2 and is incorporated herein by reference.
The
        disclosure regarding the Private Placement (as that term is defined in Item
        3.02) in Item 3.02 with respect to the Subscription Agreements, Common Stock
        Purchase Warrants and the Registration Rights Agreement are incorporated
        herein
        by reference.
A
        copy of
        the Company's press release announcing the above described transactions and
        events is attached as Exhibit 99.1 and is incorporated herein by
        reference.
Disclosure
        pursuant to Item 2.01 (f) follows:
Forward-Looking
        Statements
This
        report contains forward-looking statements that involve risks and uncertainties.
        Our actual results may differ materially from those discussed due to factors
        such as, among others, limited operating history, difficulty in developing,
        exploiting and protecting proprietary technologies, intense competition and
        substantial regulation in the oil and gas industry. Additional information
        concerning factors that could cause or contribute to such differences can
        be
        found in the following discussion, including the "Risks Factors" section
        below.
Description
        of Business
Overview
Golden
        Hope Resources Corp. (now renamed Eternal Energy Corp.) was incorporated
        in the
        State of Nevada on July 25, 2003 to engage in the acquisition, exploration
        and
        development of natural resource properties. As a result of our recent
        acquisition of the Project through the assignment to us of Merganser's interest
        in the Participation Agreement, we have become an exploration stage oil and
        gas
        company engaged in the exploration for petroleum and natural gas in the State
        of
        Nevada. Our rights under the Participation Agreement entitle us to acquire
        petroleum and natural gas rights and leases in an area of mutual interest
        with
        Eden Energy Corp. Pursuant to the terms of the Participation Agreement, these
        rights include any renewals or extensions thereof, by virtue of which the
        holder
        is entitled to enter, access, drill for and remove petroleum and natural
        gas on
        the lands pertaining to the leases. The lands comprising the area of mutual
        interest are located in eastern Nevada.
Plan
        of Operation
For
        the
        coming year we plan to continue to explore our leasehold position in eastern
        Nevada. At the present time, these efforts are likely to include additional
        gravity surveys, well studies, continued surface mapping, and the possibility
        of
        seismic data purchase or acquisition. This work will be done in preparation
        for
        drilling one or two exploratory wells on our leases in the Big Sand Spring
        Valley Prospect in conjunction with Eden Energy as operator of the prospect.
        The
        Company currently has rights to a 50% working interest in approximately 82,184
        gross acres which expire in 2015 and which can be extended upon production
        from
        the leases.
Under
        the
        terms of the Participation Agreement, the Company anticipates spending between
        $2,000,000 and $3,000,000 on additional leasehold acquisitions, on additional
        geological and engineering studies and on drilling and completion costs in
        the
        next 12 months.
We
        will
        require additional funds to implement the work program set forth above. These
        funds may be raised through equity financing, debt financing, or other sources,
        which may result in further dilution in the equity ownership of our shares.
        There is no assurance that we will be able to obtain financing on favorable
        terms, or if at all. In addition, there is no assurance that we will be able
        to
        maintain our operations at a level sufficient for an investor to obtain a
        return
        on his investment in our common stock. Further, we may continue to be
        unprofitable.
Competitors
The
        oil
        and gas industry is intensely competitive. We compete with numerous individuals
        and companies, including many major oil and gas companies, which have
        substantially greater technical, financial and operational resources and
        staffs.
        Accordingly, there is a high degree of competition for desirable oil and
        gas
        leases, suitable properties for drilling operations and necessary drilling
        equipment, as well as for access to funds. There are other competitors that
        have
        operations in the Nevada area and the presence of these competitors could
        adversely affect our ability to acquire additional leases.
Governmental
        Regulations
Our
        oil
        and gas operations are subject to various United States federal, state and
        local
        governmental regulations. Matters subject to regulation include discharge
        permits for drilling operations, drilling and abandonment bonds, reports
        concerning operations, the spacing of wells, and pooling of properties and
        taxation. From time to time, regulatory agencies have imposed price controls
        and
        limitations on production by restricting the rate of flow of oil and gas
        wells
        below actual production capacity in order to conserve supplies of oil and
        gas.
        The production, handling, storage, transportation and disposal of oil and
        gas,
        by-products thereof, and other substances and materials produced or used
        in
        connection with oil and gas operations are also subject to regulation under
        federal, state, provincial and local laws and regulations relating primarily
        to
        the protection of human health and the environment. To date, expenditures
        related to complying with these laws, and for remediation of existing
        environmental contamination, have not been significant in relation to the
        results of operations of our company. The requirements imposed by such laws
        and
        regulations are frequently changed and subject to interpretation, and we
        are
        unable to predict the ultimate cost of compliance with these requirements
        or
        their effect on our operations.
Research
        and Development
Our
        business plan is focused on a strategy for maximizing the long-term exploration
        and development of our oil and gas leases in Nevada. To date, execution of
        our
        business plan has largely focused on acquiring prospective oil and gas leases.
        We intend to establish a going forward exploration and development
        plan.
Properties
The
        Purchase Agreement, including our resulting rights under the Participation
        Agreement and related activities, entitles us the right to acquire a 50%
        working
        interest in federal oil and gas leases covering approximately 82,184 gross
        acres
        in Nye County, Nevada. The leases have a primary term of ten years from and
        after June 2005. The leases can be extended beyond their primary terms by
        commercial production therefrom.
We
        do not currently own any other
        property.
Employees
Currently
        our only employees are our directors and officers. We do not expect any material
        changes in the number of employees over the next 12-month period. We do and
        will
        continue to outsource contract employment as needed. However, if we are
        successful in our initial and any subsequent drilling programs we may retain
        additional employees.
Risk
        Factors
An
        investment in our common stock involves a number of very significant risks.
        You
        should carefully consider the following risks and uncertainties in addition
        to
        other information in this prospectus in evaluating our company and its business
        before purchasing shares of our company's common stock. Our business, operating
        results and financial condition could be seriously harmed due to any of the
        following risks. The risks described below are all of the material risks
        that we
        are currently aware of that are facing our company. Additional risks not
        presently known to us may also impair our business operations. You could
        lose
        all or part of your investment due to any of these risks.
There
        is no assurance that we will operate profitably or will generate positive
        cash
        flow in the future.
If
        we
        cannot generate positive cash flows in the future, or raise sufficient financing
        to continue our normal operations, then we may be forced to scale down or
        even
        close our operations. In particular, additional capital may be required in
        the
        event that:
·
drilling
                  and completion costs for further wells increase beyond our expectations;
                  or
·
we
                  encounter greater costs associated with general and administrative
                  expenses or offering costs.
The
        occurrence of any of the aforementioned events could adversely affect our
        ability to meet our business plans.
We
        will
        depend almost exclusively on outside capital to pay for the continued
        exploration and development of our properties. Such outside capital may include
        the sale of additional stock and/or commercial borrowing. Capital may not
        continue to be available if necessary to meet these continuing exploration
        and
        development costs or, if the capital is available, that it will be on terms
        acceptable to us. The issuance of additional equity securities by us would
        result in a significant dilution in the equity interests of our current
        stockholders. Obtaining commercial loans, assuming those loans would be
        available, will increase our liabilities and future cash
        commitments.
If
        we are
        unable to obtain financing in the amounts and on terms deemed acceptable
        to us,
        we may be unable to continue our business and as a result may be required
        to
        scale back or cease operations for our business, the result of which would
        be
        that our stockholders would lose some or all of their investment.
A
        decline in the price of our common stock could affect our ability to raise
        further working capital and adversely impact our
        operations.
A
        prolonged decline in the price of our common stock could result in a reduction
        in the liquidity of our common stock and a reduction in our ability to raise
        capital. Because our operations have been primarily financed through the
        sale of
        equity securities, a decline in the price of our common stock could be
        especially detrimental to our liquidity and our continued operations. Any
        reduction in our ability to raise equity capital in the future would force
        us to
        reallocate funds from other planned uses and would have a significant negative
        effect on our business plans and operations, including our ability to develop
        new projects and continue our current operations. If our stock price declines,
        we may not be able to raise additional capital or generate funds from operations
        sufficient to meet our obligations.
We
        have a limited operating history and if we are not successful in continuing
        to
        grow our business, then we may have to scale back or even cease our ongoing
        business operations.
Our
        company has a limited operating history and must be considered in the
        development stage. The success of the company is significantly dependent
        on a
        successful acquisition, drilling, completion and production program. Our
        company's operations will be subject to all the risks inherent in the
        establishment of a developing enterprise and the uncertainties arising from
        the
        absence of a significant operating history. We may be unable to locate
        recoverable reserves or operate on a profitable basis. We are in the development
        stage and potential investors should be aware of the difficulties normally
        encountered by enterprises in the development stage. If our business plan
        is not
        successful, and we are not able to operate profitably, investors may lose
        some
        or all of their investment in our company.
Trading
        of our stock may be restricted by the SEC's "Penny Stock" regulations which
        may
        limit a stockholder's ability to buy and sell our
        stock.
The
        U.S.
        Securities and Exchange Commission has adopted regulations which generally
        define "penny stock" to be any equity security that has a market price (as
        defined) less than $5.00 per share or an exercise price of less than $5.00
        per
        share, subject to certain exceptions. Our securities are covered by the penny
        stock rules, which impose additional sales practice requirements on
        broker-dealers who sell to persons other than established customers and
        "accredited investors." The term "accredited investor" refers generally to
        institutions with assets in excess of $5,000,000 or individuals with a net
        worth
        in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly
        with their spouse. The penny stock rules require a broker-dealer, prior to
        a
        transaction in a penny stock not otherwise exempt from the rules, to deliver
        a
        standardized risk disclosure document in a form prepared by the SEC which
        provides information about penny stocks and the nature and level of risks
        in the
        penny stock market. The broker-dealer also must provide the customer with
        current bid and offer quotations for the penny stock, the compensation of
        the
        broker-dealer and its salesperson in the transaction and monthly account
        statements showing the market value of each penny stock held in the customer's
        account. The bid and offer quotations, and the broker-dealer and salesperson
        compensation information, must be given to the customer orally or in writing
        prior to effecting the transaction and must be given to the customer in writing
        before or with the customer's confirmation. In addition, the penny stock
        rules
        require that prior to a transaction in a penny stock not otherwise exempt
        from
        these rules, the broker-dealer must make a special written determination
        that
        the penny stock is a suitable investment for the purchaser and receive the
        purchaser's written agreement to the transaction. These disclosure requirements
        may have the effect of reducing the level of trading activity in the secondary
        market for the stock that is subject to these penny stock rules. Consequently,
        these penny stock rules may affect the ability of broker-dealers to trade
        our
        securities. We believe that the penny stock rules discourage investor interest
        in and limit the marketability of, our common stock.
NASD
        sales practice requirements may also limit a stockholder's ability to buy and
        sell our stock.
In
        addition to the "penny stock" rules described above, the NASD has adopted rules
        that require that in recommending an investment to a customer, a broker-dealer
        must have reasonable grounds for believing that the investment is suitable
        for
        that customer. Prior to recommending speculative low priced securities to
        their
        non-institutional customers, broker-dealers must make reasonable efforts
        to
        obtain information about the customer's financial status, tax status, investment
        objectives and other information. Under interpretations of these rules, the
        NASD
        believes that there is a high probability that speculative low priced securities
        will not be suitable for at least some customers. The NASD requirements make
        it
        more difficult for broker-dealers to recommend that their customers buy our
        common stock, which may limit your ability to buy and sell our stock and
        have an
        adverse effect on the market for our shares.
Trading
        in our common shares on the OTC Bulletin Board is limited and sporadic making
        it
        difficult for our shareholders to sell their shares or liquidate their
        investments.
Our
        common shares are currently quoted on the OTC Bulletin Board. The trading
        price
        of our common shares has been subject to wide fluctuations. Trading prices
        of
        our common shares may fluctuate in response to a number of factors, many
        of
        which will be beyond our control. The stock market has generally experienced
        extreme price and volume fluctuations that have often been unrelated or
        disproportionate to the operating performance of companies with no current
        business operation. There can be no assurance that trading prices and price
        earnings ratios previously experienced by our common shares will be matched
        or
        maintained. These broad market and industry factors may adversely affect
        the
        market price of our common shares, regardless of our operating
        performance.
In
        the
        past, following periods of volatility in the market price of a company's
        securities, securities class-action litigation has often been instituted.
        Such
        litigation, if instituted, could result in substantial costs for us and a
        diversion of management's attention and resources.
Because
        of the early stage of development and the nature of our business, our securities
        are considered highly speculative.
Our
        securities must be considered highly speculative, generally because of the
        nature of our business and the early stage of its development. We are engaged
        in
        the business of exploring and, if warranted, developing commercial reserves
        of
        oil and gas. Our properties are in the exploration stage only and are without
        known reserves of oil and gas. Accordingly, we have not generated any revenues
        nor have we realized a profit from our operations to date and there is little
        likelihood that we will generate any revenues or realize any profits in the
        short term. Any profitability in the future from our business will be dependent
        upon locating and developing economic reserves of oil and gas, which itself
        is
        subject to numerous risk factors as set forth herein. Since we have not
        generated any revenues, we will have to raise additional monies through the
        sale
        of our equity securities or debt in order to continue our business
        operations.
As
        our properties are in the exploration and development stage there can be
        no
        assurance that we will establish commercial discoveries on our
        properties.
Exploration
        for economic reserves of oil and gas is subject to a number of risk factors.
        Few
        properties that are explored are ultimately developed into producing oil
        and/or
        gas wells. Our properties are in the exploration stage only and are without
        proven reserves of oil and gas. We may not establish commercial discoveries
        on
        any of our properties.
The
        potential profitability of oil and gas ventures depends upon factors beyond
        the
        control of our company.
The
        potential profitability of oil and gas properties is dependent upon many
        factors
        beyond our control. For instance, world prices and markets for oil and gas
        are
        unpredictable, highly volatile, potentially subject to governmental fixing,
        pegging, controls, or any combination of these and other factors, and respond
        to
        changes in domestic, international, political, social, and economic
        environments. Additionally, due to worldwide economic uncertainty, the
        availability and cost of funds for production and other expenses have become
        increasingly difficult, if not impossible, to project. These changes and
        events
        will likely materially affect our financial performance.
Adverse
        weather conditions can also hinder drilling operations. A productive well
        may
        become uneconomic in the event water or other deleterious substances are
        encountered which impair or prevent the production of oil and/or gas from
        the
        well. In addition, production from any well may be unmarketable if it is
        impregnated with water or other deleterious substances. The marketability
        of oil
        and gas which may be acquired or discovered will be affected by numerous
        factors
        beyond our control. These factors include the proximity and capacity of oil
        and
        gas pipelines and processing equipment, market fluctuations of prices, taxes,
        royalties, land tenure, allowable production and environmental protection.
        These
        factors cannot be accurately predicted and the combination of these factors
        may
        result in our company not receiving an adequate return on invested
        capital.
Competition
        in the oil and gas industry is highly competitive and there is no assurance
        that
        we will be successful in acquiring the leases.
The
        oil
        and gas industry is intensely competitive. We compete with numerous individuals
        and companies, including many major oil and gas companies, which have
        substantially greater technical, financial and operational resources and
        staffs.
        Accordingly, there is a high degree of competition for desirable oil and
        gas
        leases, suitable properties for drilling operations and necessary drilling
        equipment, as well as for access to funds. We cannot predict if the necessary
        funds can be raised or that any projected work will be completed. Our budget
        anticipates our acquisition of additional acreage in Nevada. This acreage
        may
        not become available or if it is available for leasing, that we may not be
        successful in acquiring the leases. There are other competitors that have
        operations in the Nevada area and the presence of these competitors could
        adversely affect our ability to acquire additional leases.
The
        marketability of natural resources will be affected by numerous factors beyond
        our control which may result in us not receiving an adequate return on invested
        capital to be profitable or viable.
The
        marketability of natural resources which may be acquired or discovered by
        us
        will be affected by numerous factors beyond our control. These factors include
        market fluctuations in oil and gas pricing and demand, the proximity and
        capacity of natural resource markets and processing equipment, governmental
        regulations, land tenure, land use, regulation concerning the importing and
        exporting of oil and gas and environmental protection regulations. The exact
        effect of these factors cannot be accurately predicted, but the combination
        of
        these factors may result in us not receiving an adequate return on invested
        capital to be profitable or viable.
Oil
        and gas operations are subject to comprehensive regulation which may cause
        substantial delays or require capital outlays in excess of those anticipated
        causing an adverse effect on our company.
Oil
        and
        gas operations are subject to federal, state, and local laws relating to
        the
        protection of the environment, including laws regulating removal of natural
        resources from the ground and the discharge of materials into the environment.
        Oil and gas operations are also subject to federal, state, and local laws
        and
        regulations which seek to maintain health and safety standards by regulating
        the
        design and use of drilling methods and equipment. Various permits from
        government bodies are required for drilling operations to be conducted; no
        assurance can be given that such permits will be received. Environmental
        standards imposed by federal, provincial, or local authorities may be changed
        and any such changes may have material adverse effects on our activities.
        Moreover, compliance with such laws may cause substantial delays or require
        capital outlays in excess of those anticipated, thus causing an adverse effect
        on us. Additionally, we may be subject to liability for pollution or other
        environmental damages which it may elect not to insure against due to
        prohibitive premium costs and other reasons. To date we have not been required
        to spend any material amount on compliance with environmental regulations.
        However, we may be required to do so in future and this may affect our ability
        to expand or maintain our operations.
Exploration
        and production activities are subject to certain environmental regulations
        which
        may prevent or delay the commencement or continuance of our
        operations.
In
        general, our exploration and production activities are subject to certain
        federal, state and local laws and regulations relating to environmental quality
        and pollution control. Such laws and regulations increase the costs of these
        activities and may prevent or delay the commencement or continuance of a
        given
        operation. Compliance with these laws and regulations has not had a material
        effect on our operations or financial condition to date. Specifically, we
        are
        subject to legislation regarding emissions into the environment, water
        discharges and storage and disposition of hazardous wastes. In addition,
        legislation has been enacted which requires well and facility sites to be
        abandoned and reclaimed to the satisfaction of state authorities. However,
        such
        laws and regulations are frequently changed and we are unable to predict
        the
        ultimate cost of compliance. Generally, environmental requirements do not
        appear
        to affect us any differently or to any greater or lesser extent than other
        companies in the industry.
We
        believe that our operations comply, in all material respects, with all
        applicable environmental regulations.
We
        are
        not fully insured against all possible environmental risks.
Exploratory
        drilling involves many risks and we may become liable for pollution or other
        liabilities, which may have an adverse effect on our financial
        position.
Drilling
        operations generally involve a high degree of risk. Hazards such as unusual
        or
        unexpected geological formations, power outages, labor disruptions, blow-outs,
        sour gas leakage, fire, inability to obtain suitable or adequate machinery,
        equipment or labor, and other risks are involved. We may become subject to
        liability for pollution or hazards against which it cannot adequately insure
        or
        which it may elect not to insure. Incurring any such liability may have a
        material adverse effect on our financial position and operations.
Any
        change to government regulation/administrative practices may have a negative
        impact on our ability to operate and our
        profitability.
The
        laws,
        regulations, policies or current administrative practices of any government
        body, organization or regulatory agency in the United States or any other
        jurisdiction, may be changed, applied or interpreted in a manner which will
        fundamentally alter the ability of our company to carry on our business.
        The
        actions, policies or regulations, or changes thereto, of any government body
        or
        regulatory agency, or other special interest groups, may have a detrimental
        effect on us. Any or all of these situations may have a negative impact on
        our
        ability to operate and/or our profitably.
Our
        Bylaws contain provisions indemnifying our officers and directors against
        all
        costs, charges and expenses incurred by them.
Our
        Bylaws contain provisions with respect to the indemnification of our officers
        and directors against all costs, charges and expenses, including an amount
        paid
        to settle an action or satisfy a judgment, actually and reasonably incurred
        by
        him, including an amount paid to settle an action or satisfy a judgment in
        a
        civil, criminal or administrative action or proceeding to which he is made
        a
        party by reason of his being or having been one of our directors or
        officers.
Investors'
        interests in our company will be diluted and investors may suffer dilution
        in
        their net book value per share if we issue additional shares or raise funds
        through the sale of equity securities.
In
        the
        event that we are required to issue any additional shares or enter into private
        placements to raise financing through the sale of equity securities, investors'
        interests in our company will be diluted and investors may suffer dilution
        in
        their net book value per share depending on the price at which such securities
        are sold. If we issue any such additional shares, such issuances also will
        cause
        a reduction in the proportionate ownership and voting power of all other
        shareholders. Further, any such issuance may result in a change in our
        control.
Our
        Bylaws do not contain anti-takeover provisions, which could result in a change
        of our management and directors if there is a take-over of our company.
We
        do not
        currently have a shareholder rights plan or any anti-takeover provisions
        in our
        Bylaws. Without any anti-takeover provisions, there is no deterrent for a
        take-over of our company, which may result in a change in our management
        and
        directors.
Directors
        and Executive Officers
The
        following table sets forth information concerning our current executive officers
        and directors:
Name
Age
Position
Bradley
                  M. Colby
49
Director,
                  President, CEO, Treasurer, CFO and Secretary
John
                  Anderson
41
Director
Frederick
                  Fisher
46
Director
Tom
                  Murdoch
42
Director
Chris
                  Sturdy
42
Director
Bradley
        M. Colby
was
        appointed as the Company's President, Chief Executive Officer, Treasurer, Chief
        Financial Officer and Secretary, and also as a Director, on November 4, 2005.
        Mr. Colby has over 25 years of experience in exploration and production land
        and
        geological work, including the acquisition and disposition of producing
        properties, prospect generation and development, and the marketing and sale
        of
        multiple drilling joint ventures. Prior to joining the Company, Mr. Colby
        was a
        principal at Westport Petroleum, Inc. since December 2001, where he bought
        and
        sold producing properties for his account. From March 2000 to November 2001,
        Mr.
        Colby was the President, Chief Executive Officer and a Director of Kern County
        Resources Ltd., a private oil and gas exploration and production company
        he
        founded. Mr. Colby received a B.S. in Business-Minerals Land Management from
        the
        University of Colorado in 1979 and had studied petroleum engineering at the
        Colorado School of Mines.
John
        Anderson
was
        appointed as a Director of the Company on November 4, 2005. Since May 2004,
        Mr.
        Anderson has been President, Chief Executive Officer, Secretary, Treasurer
        and a
        Director of Key Gold Corporation, a publicly traded Nevada corporation involved
        in the exploration and mining for precious and non-precious metals and other
        mineral resources in China. From December of 1994 to the present, Mr. Anderson
        has been President of Axiom, a personal consulting and investing company
        primarily involved in capital raising for private and public companies in
        North
        America, Europe, and Asia. From February of 2001 to the present, he has served
        as a Director of Wescorp Energy, Inc., a publicly traded Nevada corporation,
        and
        from March of 2003 to the present as its President and Chief Executive Officer.
        In addition, from 2000 to the present he has served as a Director of CTI
        Diversified Holdings Ltd. and from 2003 to the present as a Director of Brett
        Resources Corp. Mr. Anderson holds a B.A. from University of Western
        Ontario.
Frederick
        Fisher
has been
        a Director of the Company since inception. He was our President, CEO, Treasurer
        and CFO since the Company's inception until his resignation on November 4, 2005.
        From May 1997 to the present, he has also been a Director of StarAsia Capital
        Inc., a private venture capital company for emerging mining and start-up
        companies located in Bangkok, Thailand. From June 2001 to the present, he
        has
        worked out of Toronto, Ontario and from May 1997 to June 2001, he worked
        in
        Bangkok, Thailand. From September 1998 to March 2000, he was a Director and
        Officer of Sabai Sabai Enterprises Corp., an importer of low-priced quality
        products from Southeast Asia for distribution throughout North America based
        out
        of Bangkok, Thailand. From September 1997 to April 1999, he was a Director
        and
        Officer of Meximed Industries, a medical supplies distributor based out of
        Vancouver, BC. Some of the publicly-trading mining companies he has worked
        with
        in the past are Melinga Resources (MNA:Vancouver Stock Exchange), Cercal
        Resources (CER:Alberta Stock Exchange), Beaufield Resources Inc. (BFD:Vancouver
        Stock Exchange), Victorian Eneuretic (VIC:Vancouver Stock Exchange), Yukon
        Gold
        Corp. (Vancouver Stock Exchange), Innexus Biotechnology, Inc. (IXS:TXS Venture
        Exchange), St. Elias Mines Ltd. (SLI:TSX Venture Exchange). He assisted these
        companies in developing their business and operating plans and raising financing
        for their mining operations by introducing them to potential mining partners
        and
        venture capitalists. From 1986 to 1989, Mr. Fisher was a stockbroker at
        Jefferson Securities in Vancouver, B.C. He received an Honors B.A. Degree
        from
        York University in Toronto in 1984.
Tom
        Murdoch
has been
        a Director of the Company since inception, and was the Secretary from inception
        until his resignation on November 4, 2005. From March 1999 to the present,
        he
        has been the Sales/Program Manager for Matcor Automotive Inc., an automotive
        parts manufacturer in Toronto, Ontario specializing in metal stamped and
        welded
        assemblies. From August 1992 to March 1999, he was the Manager of Procurement
        and New Model Development for Honda of Canada Manufacturing Inc. in Alliston,
        Ontario. Over the past several years, he assisted Beautifle Resources
        (BFD:Vancouver Stock Exchange), Mountain Lake Resources and Terra Camp Mining,
        privately-held mining companies, in developing their business and operating
        plans and raising financing for their mining operations by introducing them
        to
        potential mining partners and venture capitalists. He has also been involved
        in
        other areas of mining over the years. Mr. Murdoch earned a Bachelors Degree
        in
        Economics from Wilfrid Laurier University in Waterloo, Ontario in May of
        1985.
        Subsequently, he earned a post graduate Diploma in Business Administration
        from
        Wilfrid Laurier University in May of 1986.
Chris
        Sturdy
has been
        a Director of the Company since inception. From May 1993 to the present,
        he has
        been employed as a designer and customer service specialist with Nickel General
        Contracting, a full service commercial and residential builder specializing
        in
        renovating turn of the century homes, located in Mississauga, Ontario. From
        March 1998 until May 2001, he also worked as an importer for Vereshack Agencies,
        an importer representing numerous European metal clasp and pull manufacturers
        selling to the Canadian fashion industry, with their primary customer being
        Roots Canada. The company is a family business in operation since the 1950's
        and
        is located in Mississauga, Ontario. Mr. Sturdy attended Sheridan College
        of
        Applied Arts and Technologies in Oakville, Ontario where he studied liberal
        arts
        during 1983 and 1984. He also attended Harris Institute for the Arts in Toronto,
        Ontario where he studied a Recording Industry Orientation program during
        1991
        and 1992.
There
        are
        no family relationships among any of our directors, executive officers or
        key
        employees.
Indemnification
        of Directors and Officers; Agreements
Our
        Articles of Incorporation provide that no director or officer of the Company
        will be personally liable to the Company or any of its stockholders for damages
        for breach of fiduciary duty as a director or officer or for any act or omission
        of any such director or officer, except for (i) acts or omissions involving
        intentional misconduct, fraud or a knowing violation of law or (ii) the payment
        of dividends in violation of Section 78.300 of the Nevada Revised Statutes.
        Our
        Bylaws provide indemnification by the Company of any individual made a party
        to
        proceeding because he is or was an officer, director, employee or agent of
        the
        Company against liability incurred in the proceeding, to the fullest extent
        permissible under the laws of Nevada. The Bylaws provide that the Company
        advance the expenses of officers and directors incurred in defending any
        such
        proceeding, provided that the Company received an undertaking from such person
        to repay the expenses advanced if it is ultimately determined that he is
        not
        entitled to be indemnified.
In
        connection with Mr. Colby's appointment as the Company's President, Chief
        Executive Officer, Treasurer, Chief Financial Officer and Secretary, the
        Company
        entered into an employment agreement with Mr. Colby. The employment agreement
        has a two-year term.
We
        do not
        have agreements with any of our other directors.
Certain
        Relationships and Related Transactions
In
        connection with the Company's acquisition of the Project, and after the related
        35-for-1 forward stock split and the related merger of our wholly owned
        subsidiary, Mr. Colby acquired beneficial ownership of 26,250,000 shares
        (post-split) of our common stock held by Mr. Fisher and Mr. Murdoch, of which
        23,000,000 shares (post-split) were then returned to the Company for
        cancellation by Mr. Colby and are no longer outstanding. As a result, Mr.
        Colby
        acquired 3,250,000 shares (post-split) of our common stock.
Voting
        Securities
Our
        authorized capital stock consists of 875,000,000 shares of common stock,
        $0.001
        par value. Our common stock is the only class of voting securities issued
        and
        outstanding. Each share of common stock is entitled to one vote. On November
        7,
        2005 (after adjustment for the split and the return to our treasury for
        cancellation of 23,000,000 shares of our common stock), there were 28,876,000
        shares of our common stock issued and outstanding.
Market
        Price of and Dividends on the Registrant's Common Equity and Related Stockholder
        Matters
Our
        common stock, par value $.001, is dually quoted on the Pink Sheets and the
        OTC
        Bulletin Board under the symbol "EERG" effective November 7, 2005, and, prior to
        that, it was quoted under the symbol "GHPR"; however, no active trading market
        in our securities has yet commenced. As of November 7, 2005, there were
        28,876,000 shares (after taking into effect our recently completed 35-for-1
        forward stock split and our recent private placement) of our common stock
        outstanding and approximately 36 holders of record. A total of 3,250,000
        shares
        (post-split) are beneficially held by Mr. Colby, and an additional 1,126,000
        shares (post-split) are held by investors in our recently completed private
        placement, all of which shares are restricted securities, as that term is
        defined in Rule 144 of the Rules and Regulations of the Securities and Exchange
        Commission, promulgated under the Act. Under Rule 144, such shares can only
        be
        publicly sold, subject to volume restrictions and certain restrictions on
        the
        manner of sale, commencing one year after their acquisition.
We
        have
        not paid any cash dividends since inception to the holders of our common
        stock.
        We currently intend to retain any earnings for internal cash flow
        use.
Compensation
        of Directors and Executive Officers
We
        do not
        currently compensate our directors in cash for their service as members of
        our
        board of directors. We do reimburse our directors for reasonable expenses
        in
        connection with attendance at board meetings.
The
        following table sets forth certain annual and long-term compensation paid
        to our
        Chief Executive Officer and our executive officers.
Summary
        Compensation Table
Annual
                  Compensation
Long-Term
Compensation
Other
Restricted
Securities
Annual
Stock
Underlying
All
                  Other
Fiscal
Salary
Bonus
Compensation
Award(s)
Options
Compensation
Name
                  & Principal Position
Year
($)
($)
($)
($)
(#)
($)
Frederick
                  Fisher, President, CEO,
2005
0
0
0
0
0
0
Treasurer,
                  CFO*
2004
0
0
0
0
0
0
Tom
                  Murdoch, Secretary*
2005
0
0
0
0
0
0
2004
0
0
0
0
0
0
Bradley
                  M. Colby, President, CEO
2005
60,000*
125,000*
0
0
1,443,800*
0
Treasurer,
                  CFO and Secretary*
*
        Effective November 4, 2005, Mr. Fisher and Mr. Murdoch resigned as executive
        officers of the Company. On the same date, Mr. Colby was appointed as the
        Company's President, CEO, Treasurer, CFO and Secretary. Mr. Colby's employment
        agreement provides that Mr. Colby is entitled to a signing bonus of $125,000,
        an
        annual salary of $60,000 and an option to purchase 1,443,800 shares (post-split)
        of the Company's common stock.
Security
        Ownership of Certain Beneficial Owners and Management
The
        following table sets forth certain information regarding the shares of common
        stock beneficially owned or deemed to be beneficially owned as of November
        7,
        2005 by: (i) each person whom we know beneficially owns more than 5% of our
        common stock, (ii) each of our directors, (iii) the executive officers named
        in
        the summary compensation table, and (iv) all such directors and executive
        officers as a group.
Except
        as
        indicated by the footnotes below, we believe, based on the information furnished
        to us, that the persons and entities named in the table below have sole voting
        and investment power with respect to all shares of our common stock that
        they
        beneficially own, subject to applicable community property laws.
In
        computing the number of shares of common stock beneficially owned by a person
        and the percentage ownership of that person, we deemed outstanding shares
        of
        common stock subject to options or warrants held by that person that are
        currently exercisable or exercisable within 60 days of November 7, 2005.
        We did
        not deem these shares outstanding, however, for the purpose of computing
        the
        percentage ownership of any other person.
Shares
                  of Common
Percent
                  of Common
Stock
                  Beneficially
Stock
                  Beneficially
Owned
                  (1)
Owned
                  (1)
Name
Bradley
                  M. Colby (2)
3,250,000
11.3
%
Frederick
                  Fisher
0
0
Tom
                  Murdoch
0
0
Chris
                  Sturdy
0
0
John
                  Anderson
0
0
All
                  directors and executive officers as a group (5 persons)
3,250,000
11.3
%
Notes
        to
        Beneficial Ownership Table:
(1)
        Applicable percentage ownership is based on 28,876,000 shares (post-split)
        of
        common stock outstanding at November 7, 2005. The number of shares of common
        stock owned are those "beneficially owned" as determined under the rules of the
        Securities and Exchange Commission, including any shares of common stock
        as to
        which a person has sole or shared voting or investment power and any shares
        of
        common stock which the person has the right to acquire within sixty (60)
        days
        through the exercise of any option, warrant or right.
(2)
        Includes 2,500,000 shares (post-split) owned by
        Mr. Colby and an aggregate of 750,000 shares (post-split) owned by five members
        of his immediate family as to which he disclaims beneficial
        ownership.
Committees
        of the Board of Directors
We
        do not
        have standing audit, nominating or compensation committees of the board of
        directors, or committees performing similar functions, and therefore our
        entire
        board of directors performs such functions. We are not currently listed on
        any
        national exchange and are not required to maintain such committees by any
        self-regulatory agency. We do not believe it is necessary for our board of
        directors to appoint such committees because the volume of matters that come
        before our board of directors for consideration permits each director to
        give
        sufficient time and attention to such matters to be involved in all decision
        making. Messrs. Sturdy and Anderson are independent directors. All directors
        participate in the consideration of director nominees. We do not have a policy
        with regard to attendance at board meetings.
We
        do not
        have a policy with regard to consideration of nominations of directors. We
        accept nominations for directors from our security holders. There is no minimum
        qualification for a nominee to be considered by our directors. All of our
        directors will consider any nomination and will consider such nomination
        in
        accordance with his or her fiduciary responsibility to the Company and its
        stockholders.
Security
        holders may send communications to our board of directors by writing to Eternal
        Energy Corp., 2120 West Littleton Blvd., Suite 300, Littleton, Colorado 80120,
        attention Board of Directors or any specified director. Any correspondence
        received at the foregoing address to the attention of one or more directors
        is
        promptly forwarded to such director or directors.
Item
        3.02 Unregistered Sales of Equity Securities.
Effective
        November 7, 2005, the Company sold to accredited investors pursuant to
        subscription agreements, in a private placement offering (the "Private
        Placement"), securities consisting of an aggregate of up to 1,126,000 shares
        (the "Shares") of its common stock and common stock purchase warrants (the
"Warrants") to purchase up to an aggregate of 1,126,000 shares of its common
        stock (the "Warrant Shares"), for an aggregate purchase price of $1,126,000. The
        Warrants have an exercise period of two years and an exercise price of $1.20
        per
        share. Pursuant to the terms of the Registration Rights Agreement entered
        into
        by the Company and the investors, the Company agreed to file within 90 days
        after the closing of the Private Placement a registration statement to cover
        the
        resale of the Shares, the Warrants and the Warrant Shares. If a registration
        statement is not filed with the SEC within that time period, the Company
        will
        pay to each investor an amount equal to 1.0% of the aggregate amount invested
        by
        the investor for each 30-day period following the filing deadline until the
        registration statement is filed.
The
        securities sold by the Company in the Private Placement were exempt from
        registration under the Securities Act of 1933, as amended, pursuant to
        Regulation S promulgated thereunder.
A
        copy of
        each of the form of Subscription Agreement, the form of Common Stock Purchase
        Warrant and the Registration Rights Agreement are attached as Exhibits 10.3,
        10.4 and 10.5, respectively, and are incorporated herein by reference. The
        press
        release attached as Exhibit 99.1 is incorporated herein by
        reference.
Item
        5.01 Changes in Control of Registrant.
Item
        5.02 Departure of Directors or Principal Officers; Election of Directors;
        Appointment of Principal Officers.
On
        November 4, 2005, Frederick Fisher resigned as the Company's President, Chief
        Executive Officer, Treasurer and Chief Financial Officer and Tom Murdoch
        resigned as the Secretary. Effective ten days from the filing of an information
        statement pursuant to Rule 14f-1 and its distribution to the Company's
        stockholders, Frederick Fisher, Tom Murdoch and Chris Sturdy resigned from
        the
        Company's board of directors.
On
        November 4, 2005, the Company appointed Bradley M. Colby as its President,
        Chief
        Executive Officer, Treasurer, Chief Financial Officer and Secretary. In
        addition, Bradley M. Colby and John Anderson were appointed to the Company's
        board of directors.
Item
        5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal
        Year.
On
        November 4, 2005, the Company approved and adopted an amendment to its Bylaws,
        which provides that if a vacancy occurs on the board of directors, the directors
        remaining in office may fill the vacancy. A copy of Amendment No. 1 to the
        Bylaws is attached as Exhibit 3(ii) and is incorporated herein by
        reference.
The
        disclosure regarding the Articles of Merger in Item 2.01 and Exhibit 3(i).3
        hereto are incorporated herein by reference. Effective on November 7, 2005,
        the
        Articles of Merger amended the Company's Articles of Incorporation and changed
        its name to "Eternal Energy Corp." A copy of the press release announcing the
        name change is attached as Exhibit 99.2 and is incorporated herein by reference.
The
        Company also effected a 35-for-1 forward stock split, with a record date
        of
        November 7, 2005. The Certificate of Change attached as Exhibit 3(i).2 is
        incorporated herein by reference.
Item
        9.01 Financial Statements and Exhibits.
(d)
        Exhibits
Exhibit
Description
                  of Exhibit
3(i).1*
Articles
                  of Incorporation filed with the Nevada Secretary of State on July
                  25,
                  2003.
3(i).2
Certificate
                  of Change filed with the Nevada Secretary of State effective November
                  7,
                  2005.
3(i).3
Articles
                  of Merger filed with the Nevada Secretary of State effective November
                  7,
                  2005.
3(ii)
Amendment
                  No. 1 to Bylaws, adopted November 4, 2005.
10.1
Agreement
                  and Plan of Merger between Golden Hope Resources Corp. (renamed
                  Eternal
                  Energy Corp.) and Eternal Energy Corp., filed with the Nevada Secretary
                  of
                  State effective November 7, 2005.
10.2
Purchase
                  and Sale Agreement between Eternal Energy Corp. and Merganser Limited,
                  dated November 7, 2005.
10.3
Form
                  of Subscription Agreement.
10.4
Form
                  of Common Stock Purchase Warrant.
10.5
Registration
                  Rights Agreement.
99.1
Press
                  Release dated November 9, 2005.
99.2
Press
                  Release dated November 7, 2005.
*
          Incorporated by reference from the Company's Form 10-SB12G filed on August 18,
          2004.
SIGNATURE
Pursuant
        to the requirements of the Securities Exchange Act of 1934, the registrant
        has
        duly caused this report to be signed on its behalf by the undersigned hereunto
        duly authorized.
Date:
                  November 9, 2005
ETERNAL
                  ENERGY CORP.
By:
/s/
                Bradley M. Colby
Bradley
                  M. Colby
President
                  and Chief Executive Officer
Exhibit
        Index
Exhibit
Description
                    of Exhibit
3(i).1*
Articles
                    of Incorporation filed with the Nevada Secretary of State on
                    July 25,
                    2003.
3(i).2
Certificate
                    of Change filed with the Nevada Secretary of  State effective
                    November 7, 2005.
3(i).3
Articles
                    of Merger filed with the Nevada Secretary of State effective
                    November 7,
                    2005.
3(ii)
Amendment
                    No. 1 to Bylaws, adopted November 4, 2005.
10.1
Agreement
                    and Plan of Merger between Golden Hope Resources Corp. (renamed
                    Eternal
                    Energy Corp.) and Eternal Energy Corp., filed with the Nevada
                    Secretary of
                    State effective November 7, 2005.
10.2
Purchase
                    and Sale Agreement between Eternal Energy Corp. and Merganser
                    Limited,
                    dated November 7, 2005.
10.3
Form
                    of Subscription Agreement.
10.4
Form
                    of Common Stock Purchase Warrant.
10.5
Registration
                    Rights Agreement.
99.1
Press
                    Release dated November 9, 2005.
99.2
Press
                    Release dated November 7, 2005.
*
          Incorporated by reference from the Company's
          Form 10-SB12G filed on August 18, 2004.