A Compelling Case' A Focused Vision'

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Unconventional Natural Gas

• A Compelling Case. A Focused Vision.
• October 2006

TSX VENTURE SPI
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Disclosure Statement

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

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Who We Are

• A junior public exploration and development
  company focused on unconventional natural gas
• Seasoned management team with expertise in
  unconventional natural gas development
• Operations focused on Farrell Creek area of
  northeast B.C.
• Farrell Creek resource estimated at over 1 tcf on
  the companys 40,000 acres of land
• Currently in pre-production stage with production
  and cash flow generation expected in Q3 2007

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CSRi at a Glance

• Shares outstanding 28.8 million
• Listing TSX Venture SPI
• Recent share price 1.92
• Market capitalization 55 million
• Management and Directors 2.5
• Institutional shareholders 22.5
• Largest shareholder Sprott Asset Management
  (18.8)
• (As at September 15, 2006)

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CSRi at a Glance

• Total land holdings 40,000 acres
• (62 sections)
• Contingent resource
• Gething coals 12 16 bcf/section
• Gething shales 11 17 bcf/section
• Total contingent resource 1.4 2.0 tcf
• Market cap / recoverable mcf 0.06 per mcf
• (Sproule Associates, April 17, 2006, Gething
  Formation only at Farrell Creek, B.C.)

Calculated on average contingent resource of 1.6
tcf at an estimated 60 recovery rate.
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Unconventional Natural Gas

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

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Conventional vs. Unconventional Gas

• Can evaluate with well logs
• Immediate gas flow to well bore
• May fracture to stimulate
• Inorganic reservoir rock gas has migrated to
  reservoir trap
• Permeability not depth dependant
• Few wells to develop
• Water/gas ratio increases
• Reserve determination follows established
  guidelines

• Needs specialized lab tests on cores
• Gas diffuses slowly to fractures
• Always fracture to stimulate
• Organic reservoir rock is its own source rock
• Permeability decreases with depth
• Multiple wells and facilities
• Water/gas ratio decreases
• Requires production testing to demonstrate
  reserves

Source Modified from AJM Petroleum Consultants
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Substantial Resource Play
Total unconventional gas potential in British
Columbia is estimated at 90 tcf, of which 60 tcf
is located in the Peace River Coalfield (shown in
dark blue on locator map) where CSRis Farrell
Creek property is located.
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Focused Approach
Land 62 sections Working Interest 94
average Deep Rights on over 80 of land
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Farrell Creek, NE B.C.

• Land 62 sections
• Well Spacing
• 4 8 wells per section
• Potential Well Locations
• 200 500
• Productivity per Well
• 250 300 mcf/d
• Total Potential Production
• 50 150 mmcf/d

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Resource Report

• Sproule Associates Limited Preliminary Report
• April 17, 2006
• Farrell Creek Gething Formation -
• Contingent gas-in-place resource potential
• Coals 12 16 bcf per section
• Shales 11 17 bcf per section
• Total contingent resources 1.4 2.0 tcf

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

• Coal
• Multiple thin seams
• As many as 30 individual seams
• Net coal thickness average 25 50 feet
• Gas content 230 550 scf/ton
• Shale
• Rich in organics
• Interbedded with coal
• Represents 50 65 of the formation
• Gas content 12 58 scf per ton

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Staged Approach
Typical Stages of an Unconventional Gas Program
Source Modified from Lamarre Geological
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Accomplishments to Date

• Drilling Program has
• Confirmed resource parameters
• Confirmed geological and resource consistency
• Generated data for resource assessment
• Demonstrated productive repeatability
• Commenced production testing three wells
  flaring
• Commenced preliminary facility design and
  pipeline hot-tap application

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Financial Summary
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2006 Capital Program
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Risks

• Production rate per well
• Well density and recovery factor
• Equipment and service costs
• Natural gas prices

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CSRi Unique Strengths

• Significant resource 1.4 2.0 tcf (Gething
  only)
• High working interest land position 40,000 acres
• Multiple prospective targets
• Resource knowledge and expertise of technical
  team
• Ready access to infrastructure and pipeline
• Advancing towards development phase of resource

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Creating Shareholder Value

• Balanced Approach. Focused Vision.

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• Canadian Spirit Resources Inc.
• Suite 1950, Ford Tower
• 633 6th Avenue S.W.
• Calgary, Alberta T2P 2Y5
• Telephone [phone]
• E-mail info_at_csri.ca
• TSX Venture SPI

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