Sun Resources N.L.

Corporate

Thailand

EAGLE PROJECT, CALIFORNIA

(10% INTEREST REDUCING)

The Eagle Project is a development on a stratigraphic trap prognosed to contain gross recoverable volumes up to 8.8 mmbo and 33 bcf of gas (mean estimate) in the Eocene age Upper and Lower Gatchell Sandstone. These volumes and reservoirs have been the target for the drilling of Eagle #1 in 2001 and the Eagle North #1 well in 2006. Eagle North #1 in particular, established the presence of moveable oil in the target Gatchell sand zone over 177 metres of horizontal extent, ie from 4,209 to 4,386 metres measured depth (“MD”) in the well.

Regrettably both wells incurred mechanical failures, in particular Eagle North #1 could not be tested due to completion assembly mechanical failures. The production valve in the completion string was assessed to be too damaged to allow a successful retrieval and replacement of the completion string, and therefore on a risk assessed basis, continuing operations were not justified. An independent review and report into past well operations has recommended a new well with a larger bore hole diameter to target the good oil shows in Eagle North #1 horizontal rather than a re-entry of the current suspended Eagle North #1 well bore. The small diameter of the final Eagle North #1 bore hole allows no flexibility in carrying out operations and limits the selection of down hole equipment used in drilling, logging and testing and hence carries the high risk of a repeat outcome as Eagle North #1.

During the September 2007 quarter, the majority of the joint venture decided to join the Operator on a farmout of the Eagle Oil Pool Development. The joint venture is offering a farminee, who will become the new project Operator, the choice of drilling; Shannon-1, a modest, low, risk step out well to the Mary Bellochi-1 well, testing the 1.2 mmbo and 3 bcfg potential of the small structural closure on the regional stratigraphic trap; or Tulago-1, an aggressive step out 1,200 metre updip of the Mary Bellochi-1 well, testing the mean case (8.8 mmbo and 33 bcfg) potential of the stratigraphic trap. The exact timing of either well is currently unknown, but is tenatively placed in 2008 and is obviously subject to a successful farmout and availability of a deep rig and experienced personnel.

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